2011 Free Credit Report Guide HTML version

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redit Score?
Before you ask... no, a credit
score is nothing to do with
football! But if you have any
suggestions for an interesting
image that would help to
illustrate what a credit score is,
please let us know.
you can fill us in on how the off-
side rule works it would also be much appreciated!
Likewise, if
Anyway, back to business. What is a credit score? Well, most
lenders that you apply to for credit use credit scores to predict
how risky it is to lend to you. Your credit score (also known as
credit rating) is calculated using a formula that takes into
account credit information supplied on your credit report by
credit reference agen
form when you apply.
Your credit rating not only determines whether you are a
suitable risk to lend to, but can also determine what interest
rate you're offered and how much a lender will lend you. You'll
often hear people say things such as "I got the best rate
because I have a good credit score" or "I couldn't borrow
enough because I have a bad cred
also use credit ratings to identify which customers are likely to
generate the most revenue for them.
it rating". Some lenders
Although it is a common belief that there is a generic credit
scoring system (credit rating system) used by all lenders, this is
just a myth. Every lender has its own formula for calculating
your credit score, and they update them regularly depending
on their criteria and lending policy a
reason that whilst one lender may decline your application for
credit, another may happily accept it.
t the time. It is for this
Copyright © 2011 Which Credit Report. All Rights Reserved.
What Is A C
cies such as Experian, Equifax and Call
redit, and information you provide on the lender's application