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Know if you're accepted before you apply with QuickCheck

  • Get credit - up to £1,500
  • QuickCheck won’t affect your credit rating
  • Get a fast response in 60 seconds
Check Now 34.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender

How your rating is calculated

Your credit rating is calculated by the lender you’ve applied to, at the point of your application, rather than the credit reference agencies. Lenders use the details you supply on your application form alongside information from your credit history (which they get from one or more credit reference agencies) to formulate your individual credit rating – which helps them decide whether you fit their own borrowing profile.

The better your credit rating the more likely it is that your lender of choice will approve your application. However, even if your credit rating isn’t perfect it’s worth noting that some lenders may still be willing to provide you with a credit card, loan or other form of credit because they specialise in borrowers in similar circumstances to you - so don’t despair.

Before you decide to take out any type of credit you should be confident that you can make your monthly payments on time, as failing to do so can have serious consequences. For example, if you have a loan secured against your property and you fall behind on repayments, you could face losing your home.

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Credit reference agency scores

When you apply to view your credit history online, the credit reference agency you use will often give you their own version of a credit rating. However, this does not take into account any of the additional details a lender might ask for that are missing from your credit history, and so isn’t a hard and fast indication of whether or not your application will be successful. Having said that, this score could be a useful guide and help you decide what chance you have of being accepted for the product and by the lender you want.

The way the credit reference agencies score people also varies. If you apply to Experian you’ll be given a score of between 0 and 1,000; Equifax gives you a score of between 0 and 600; and Callcredit (Noddle) offers a score of between 0 and 5. It’s worth noting that you may have an ‘excellent’ score with one credit reference agency but an ‘average’ score with another, as the information that each agency holds about you could be different. If this happens to you, check your history thoroughly to make sure there are no discrepancies in the information each agency has.

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Will I be accepted?

Imagine that you’ve checked your credit history, it shows that you’ve never missed a repayment in six years, your address is up to date and you are on the Electoral Roll. It is all looking good – so you should be accepted for credit no problem. Not necessarily!

Remember that the lender will also look at the data on your application form, including your income and expenditure, to decide whether to offer you credit. They may decide that whilst you are managing your existing commitments perfectly you can’t afford to take on any more borrowings.

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What can damage your credit history?

Your personal information has no bearing on your credit history, but your financial past does.

Every time you miss a payment or pay after the due date it shows on your credit history for up to six years and could stand against you as a result. Lenders will be able to see details of all the accounts you have; know what your debts total and be able to see if you have any CCJs or defaults against you. They use all of this information to help them predict your future borrowing behaviour and determine whether you will be a suitable customer for them. If your credit history shows evidence of missed and late payments, this might deter lenders.

Before you apply for credit be sure to close any accounts you don’t use, such as an old credit card that you keep in a drawer for emergencies, as a lender will add the credit limit to their assessment of the credit that is already available to you. They could then decide that you may not be able to afford to take on any additional borrowing.

If you’ve had a joint financial product with someone in the past, like a joint bank account with an old flatmate or ex-partner, the two of you could be financially linked on your credit history. This means that their credit history could impact on yours, so it may be worth requesting a notice of disassociation from the credit reference agencies. This ensures the other person’s credit history isn’t taken into account by lenders when you apply for credit. However, this can only be done if you no longer share a financial product with that person. Click here to find out how you can check your credit history

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Know if you're accepted before you apply with QuickCheck

  • Get credit - up to £1,500
  • QuickCheck won’t affect your credit rating
  • Get a fast response in 60 seconds
Check Now 34.9% APR Representative (variable)
Intelligent Lending Ltd (Credit Broker). Capital One is the exclusive lender