Your credit score tells potential lenders a lot about the type of borrower you are. Whenever you look to borrow money, this score will be checked, so making sure yours is as healthy (and as accurate) as possible is key to securing the best deals.
When you borrow money in any way it’s recorded on credit reports held by the three credit reference bureaus; Equifax, Experian and TransUnion UK. The things that can be recorded on your credit report include:
Lenders use the data in your report to help them decide if they want to lend you money and can also influence what APR rates you are offered.
Your borrowing behaviour leaves a footprint on your credit records. Your credit report shows how much you are currently borrowing, who with, and crucially, your behaviour towards repaying on time.
If your credit score is good, this gives potential lenders confidence in you and makes you more likely to be offered a loan or credit agreement. If your history is inconsistent and you’ve missed payments before, this could affect your access to credit in the future.
That’s why it’s important to check your credit report to make sure that the information held is accurate. If there is a mistake on your file, you need to ask the company that filed the incorrect information to correct it and have this noted on your credit report. It’s in your interest to ensure that the information held by the credit bureaus accurately reflects your circumstances.
For instance, County Court Judgements (CCJs) for debt seriously affect your ability to get credit. If you had a CCJ which is now settled, ensure that this is updated on your credit file.
To keep your credit file in good order, here are the sort of things that make a difference:
If you are interested in exploring borrowing options, Salary Finance offers loans repaid from your pay. Should you be worried about your credit score, we lend to employees with a range of credit score. To find out more (including the ability to do a soft search application), click here and you can read our FAQs here.