When you submit an application for credit, the financial institution shall look at your credit history with a number of associated with the credit guide agencies. But so how exactly does this influence you?
The 3 primary credit reference agencies within the UK – Experian, Equifax and TransUnion – each hold different individual and economic facts about you which forms your credit rating. They normally use this information to produce your credit score – and all sorts of with this is taken into consideration whenever you submit an application for credit.
But this is how it gets confusing – there isn’t any such thing as a score that is universal. Each agency has its own scale… for example, Experian’s goes from 0-999; Equifax’s from 0-700; and TransUnion’s (previously referred to as Callcredit) from 0-710… and each features its own way of determining your rating. You can have even a’ that is‘good with one and ‘fair’ with another.
Whether you’re applying for a card, loan or phone that is mobile – the financial institution could make a choice to approve the job according to your credit rating. You might like to be provided an increased rate of interest and even declined in case the credit history is low. That’s why it is important to test your report before you submit an application for economic products – and don’t worry, it is an easy task to do.
With Experian, your credit rating is currently readily available for free through their site.