What Is A Credit Score?
Your credit score is a representative number that is generated from information held within your credit file. This score may differ between lenders and products, depending on the requirements that you need to meet to become a customer. While the lenders and finance companies are able to see your general credit score, they are also able to take a closer at the last six years of information, including past credit applications, any defaults or arrears, and completed credit cases. This is why it is a good idea to improve your credit score in the UK as much as possible before applying.
Your most recent information is usually considered as the most important, despite lenders having access to six years’ worth of information. From a review of your current financial situation, they will typically be able to decide whether they want to lend to you, how much to let you borrow, and how much interest they should charge. To potentially reduce your chances of being turned away, there are several steps that you can take to improve your credit rating fast, but the initial step is to check your rating.
How To Check Your Credit Score
There are three main credit scoring agencies in the UK – Experian, Equifax, and TransUnion. Each of these agencies hold financial information on everyone and allow to access the files they need during a credit application. To help you improve poor credit, these agencies allow you to freely access your full credit report through their partner websites, including Credit Karma and ClearScore, as well as many other trusted sites.
All you will need to do is create an account with your chosen partner site and submit some basic details. You will be able to access a general overview of your rating, which will be displayed as a number between 300 to 850, as well as tips on how to improve your credit score, insights, and your financial history from the past six months. This will give you an insight into what a lender or finance company may see when processing your secured debt consolidation loan application.