When you submit an application for credit, the lending company will look at your credit file with a number of associated with credit guide agencies. But how can this influence you?
The 3 credit that is main agencies when you look at the UK – Experian, Equifax and TransUnion – each hold different individual and economic information regarding you which forms your credit rating. They normally use this information to produce your credit score – and all sorts of of the is taken into account whenever you make an application for credit.
But that is where it gets confusing – there isn’t any such thing as being a score that is universal. Each agency has its scale that is own example, Experian’s goes from 0-999; Equifax’s from 0-700; and TransUnion’s (formerly referred to as Callcredit) from 0-710… and each possesses its own way of determining your rating. You can have even a ‘good’ rating with one and ‘fair’ with another.
Whether you’re applying for a card, loan or phone that is mobile – the financial institution is going to make a choice to accept the application according to your credit score. You might like to be provided an increased rate of interest and even declined in the event the credit rating is low. That’s why it is really important to check on your report it’s easy to do before you apply for financial products – and don’t worry. Read more