Personal Credit RatingYour personal credit rating
Watch this free review to help you better understanding how creditors make their choices. As a rule, there are five main criteria that determine your creditworthiness: past creditworthiness, your present indebtedness, the length of time you have used your credit, the type of credit you have granted and the number of new credit requests. While these five items are not carved in stone and different creditors sometimes use different determinants, whatever creditor assesses your credit exposure, the overall credit rating tends to be similar.
If you have never taken out or requested a credit, you may find it difficult to get to the credit manager. Although you may be able to fulfill the repayment obligations if you do not have a credit record or an established rating, creditors may be hesitant to grant you loans.
In addition, not all five rating items have the same importance; credit perfomance to date has the greatest impact, followed tightly by indebtedness to date. In the past, important issues such as old age and location were important, but today they are much less important, especially as younger individuals often make up the vast bulk of those who use loans of one kind or another.
If you take out credit, the creditor will tell you how well you are handling the guilt. Every failed payment or even worst, failure to meet the debts, will seriously harm your credit rating and make prospective lending much more challenging. Sometimes this interest increase is referred to as a "risk premium".
UK's No.1 Source: 2 Experian CreditExpert provides a free 30-day evaluation version, followed by a 14.99 pound per month charge.