Credit score is the number one thing most lenders will look at when deciding whether to grant you a loan. Lots of other factors are important. These include missed payments and defaults. County Court Judgments and insolvencies also matter. So does the amount you owe.
Importantly credit score is an attempt to ‘rank’ all the factors within your credit history. So, if you have missed payments these will be a factor in your final score. As will any defaults. Even being on the electoral register matters when creating this three-digit score.
A low credit score means you’re less likely to be accepted for a loan. Or if the lender does say ‘yes’ that you’ll be charged a higher rate of interest.
Tip: Avoid arrears. Pay off your debts. Keep credit card and overdraft balances low. Sign up for the electoral register. All these actions will help improve your credit score.