You can keep an eye on your credit history for free with ClearScore.
In this blog, we explore whether it’s worth signing up, what you’ll be scored out of and the reasons you should check your credit history.
Is it worth signing up?
Before we look into what ClearScore scores you out of, it’s a good idea to understand why you should sign up to a credit reference agency in the first place.
When you take out credit - whether that’s a loan, credit card or mortgage - the lender looks at your credit history to decide whether you’re a responsible borrower.
They’ll access this through one or more of the three credit reference agencies - Equifax, Experian and CallCredit. By checking your own credit history, you’ll have an idea of what information lenders have access to.
ClearScore is Equifax’s free credit checking agency. Through this, you can view a report on how well you’ve managed your borrowing in the past, known as your credit history
So, if you’ve ever missed payments or been issued with a default or county court judgment, these missteps will be visible on your credit history. And this is what can impact your chances when applying for credit.
What will I be scored out of?
When you log into ClearScore, you’ll notice a dashboard with your score as well as details of any positives and negatives you may have.
You’ll be given a score out of 700. This can give you an indication of how your credit history ranks against other borrowers.
It’s a good idea to have your financial information in front of you. This way you can make sure it tallies with the details ClearScore holds on you.
However, it may surprise you to hear that lenders don’t actually see the score ClearScore awards you. This score is unique to ClearScore. Lenders will only be able to see your credit history.
Ultimately, there is no such thing as a universal credit score. Each credit reference agency and the lenders themselves have their own set of criteria to work out whether you’re likely to be a responsible borrower.
What does the score mean?
If lenders cannot see your score, what’s the point in having one?
Well, you can use your score to work out how good or bad your credit history is, and whether you need to improve it.
Although lenders will not be able to see it, it’s worth still keeping an eye on your credit score. If the score increases over time, this is a good indication that your credit history is improving.
Can I improve my credit history?
As we’ve said, your credit score is not the be-all and end-all of being accepted for a credit card, loan or mortgage. There are other things lenders take into account, like your income and other credit agreements.
However, you should still concentrate on making sure your credit history is in the best shape possible. If you notice negative marks on your ClearScore account, don’t panic - there are ways you can improve your credit history.
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