Credit history: how to know your rating and what affects it

Credit history, or a credit rating, is of no small importance, because it can be the reason for refusing you a loan. Here is what you need to do to achieve a good credit rating.

When you ask for a loan, be prepared for a check of your credit history. It can be a key factor in deciding whether to give you money. The worse the rating, the worse the loan conditions that you will be offered.

Credit-rating agencies Experian, Equifax and Callcredit told how they determine the credit rating.

Credit rating calculation

Interestingly, each credit rating agency has its own evaluation method: Experian estimates the British system of 999 points, Equifax 700 points, and Callcredit has 710 points.

Experian will give you 20 points if your credit limit is £5 thousand. And the net balance on the account will add 60 more points every month. Spending less than 30% of the credit limit will provide you with another 90 points.

If you missed a monthly loan repayment only once, 130 points will be deducted from you, and the total failure to fulfill your loan obligations will take as much as 350 points. A low credit limit of £250 or less will reduce the rating by 40 points. The same can be said about opening a new account within the last six months.

How to check your credit rating

Interestingly, two-thirds of Britons have no idea what their credit rating is. But to improve credit history, you need to know what it is at the moment.

All three credit rating agencies, Experian, Equifax and Callcredit, give the British the opportunity to review their ratings. And finding out about the rating is free, but you will have to pay for full and regular monthly information about your credit history.

Experian. Register on CreditMatcher, which not only gives you an idea of ​​your credit history, but also helps you find loans and cards, which you will most likely not be refused. Those who want to have full information about their credit history will pay £14.99 a month after the 30-day trial period.

Equifax. To find out your rating, register on the Clearscore website. If you want to view more complete information after the expiration of the trial period of 30 days, you will pay £14.95 a month.

Callcredit. You can check the rating on the Noddle website, which will also offer you credits and cards, which you will most likely not be refused.

What to do if you are refused a credit card

No matter how tempting this idea may seem, the worst thing you can do is immediately apply for a different card. The fact is that whenever you apply for a card, this is reflected in your rating. A large number of applications for a credit card for a short period of time can be perceived as evidence of financial problems.

At the same time, if you have never taken a loan and you do not have a credit history at all, you can still have problems obtaining a loan, because nothing is known about you.

How to improve the credit rating:

do not make too many applications for a loan in a short period of time. This will be seen as evidence of financial problems, and every subsequent request for a loan will affect credit history;

try always to pay bills on time, including debts on loans and utilities. Late payment will affect credit history;

try to reduce debt. Do this before applying for a new loan: if your debt is too large, the probability of failure is high;

use a special credit card to build a credit history. Such cards are characterized by a higher percentage compared to the usual ones, but if you are able to show by using them that you are spending money responsibly, your chances may increase.

Does the rent affect the credit rating?

No, regular payments for an apartment are not taken into account when calculating the credit rating. At least for now. But some deputies are in favor of taking into account rental payment.

Please note: Experian offers a service that informs tenants whether they pay on time, which ultimately helps improve the credit rating.

read other news here

credit_history credit_rating UK
If you notice an error, highlight the text you want and press Ctrl + Enter to report it to the editor
I recommend
No recommendations yet


Post your comment to communicate and discuss this article.

Police have launched a manhunt after religious idols and Diwali donations were stolen from two north London temples in early morning raids. The Met said the early morning burglaries were being treated as linked and released a CCTV image of a hooded suspect on Saturday. Officers also urged faith leaders to be vigilant against future incidents. The first happened at the Shree Swaminarayan Temple in Willesden Lane, Brent, on November 9. While the priests were...
Rail commuters have been told not to attempt to travel into London Waterloo after engineering works overran. South Western Railway (SWR) passengers using the route into London Waterloo from Surbiton were warned not to travel on Monday morning. Disruption is expected to last for the entire day and the Network Rail engineering works will not be finished until 8.39am at the earliest.  The rail operator said Woking, Surbiton, Raynes Park and Earlsfield station...
Some 82 people have been arrested after hundreds of protesters gathered in central London in attempts to block five bridges on Saturday, as they demanded the Government take greater action on climate change. The group Extinction Rebellion encouraged people to perform a sit-in across Southwark, Blackfriars, Waterloo, Westminster and Lambeth bridges on following a co-ordinated week of action around the UK. Following their closures, all bridges have now reope...
Almost one million crimes of fly-tipping were reported by councils across England during 2017-18, the first fall in five years. Councils recorded 997,553 incidents of illegal dumping, an average of more than 2,700 a day. It was a slight decrease on the 1,011,000 in 2016-17 and is the first time the figure has dropped since 2013. The government said two-thirds of fly-tipping involved household waste. It did not reveal the total cost to taxpayers of clearing...
Children living in London boroughs with high diesel pollution suffer from stunted lung capacity, putting them at risk of early death, a study has said. Pupils living in areas that failed to meet EU nitrogen dioxide limits were at increased risk of lung disease, researchers found. The research studied 2,000 London school children over five years. "We are raising a generation of children reaching adulthood with stunted lungs," researchers said. Academics fro...
A private school teacher has been left partially blind after another woman smashed a glass in her face during a night out.  Lisa Bertsch, 30, was at the Be At One bar in Richmond when she was hit in her right eye. The tumbler shattered and left Ms Bertsch, who lives with her boyfriend in Kingston, needing emergency surgery. She said the attack happened when she tried to stop the assailant pouring a cocktail over her friend’s belongings. Ms Bertsch added th...
Discarded syringes have been left in play areas and car parks as a BBC investigation found councils were being called 50 times a day to remove them. Figures obtained by the BBC showed councils handled 18,496 cases in 2017-18, a rise of 7% in two years. A volunteer pricked by a discarded needle has told how he faces a wait for HIV and hepatitis test results. The Department for Communities and Local Government said it was "committed to doing more to reduce d...
The German Zeppelin bombing campaign of London during WWI has been brought to the fore again days before the centenary of the war in a film made by schoolchildren. The first ever example of strategic bombing in history - a tactic used in total war with the goal of defeating the enemy by destroying their morale or economy - was during the First World War Emperor Kaiser Wilhelm II initially banned attacks on the capital because of his close connection to the...
London’s busiest train station has recruited a hawk to scare off pigeons following a spate of complaints from angry passengers. Aria, a five-year-old harris hawk, has begun patrolling Waterloostation in a bid to stop people having to “fight" off pigeons while eating. There are 27 food and drink retailers at the Network Rail-managed station, and many customers have complained about pigeons pecking at food and leaving a mess. The birds have been pictured sit...