#credit check uk
CALCULATE YOUR CREDIT SCORE & RATING
What is a Credit Rating?
A credit rating is used to categorise customers in very broad terms of their creditworthiness. 1 star reflects a very weak credit score, and is often referred to as ‘sub prime’. A 5 star credit rating applies to those with a very low risk of defaulting. Most people fall in the 3 star credit rating category- the average.
What is a Credit Score?
Your credit score is your credit report boiled down to one number. A credit score is a statistical measure of your creditworthiness, on a range of 0-1000 where 0 is awful and 1000 is excellent. The average credit score is 750 out of 1000.
What difference does your Credit Score make?
To be competitive on interest rates, a lender is likely to need to know how much risk they are taking on, so will only lend to customers who score more than a certain credit score – known as a ‘cut off score’. They will automatically accept those applicants who have credit scores in excess of their determined cut-off score, and will decline all others.
Different lenders have different cut-off scores, and can vary them depending on how hungry they are for new business, and how much risk they are prepared to take.
Written by CREDIT