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Your credit score is a reflection of how well you’ve managed your finances

What is my credit rating used for?

Secured Loans > Our Loans > Bad Credit Loans > Credit Rehab > What is my credit rating used for?

What is my credit rating used for?

Generally speaking, the main reason that banks and lenders will check your credit score before approving a credit application is to determine how much of a risk you would pose. Your credit score is a reflection of how well you’ve managed your finances for the past six years.

Furthermore, your credit rating is used nowadays for more than just applying for a personal loan or a mortgage. Other areas of day to day life such as mobile phone contracts where your credit score has a major effect on how good of a deal you qualify for.

Another relatively unknown area where credit scores are used are from prospective employers. This is often likely to happen when applying for jobs in certain industries such as financial services. Your credit report can be used to confirm your identity, making sure that you are who you say you are.

Everyone has the legal right to see a copy of their credit report, so you can see how it fares before approaching a lender. You can check yours by consulting a credit reference agency, such as Experian, Equifax or Callcredit, and many of them offer free trials.

When you do see it, check whether there are any mistakes that could negatively affect your rating. It could be that you’ve been a victim of fraud. If you see anything that concerns you, contact the credit reference agency who will either remove the information or tell you why they disagree with your claim.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

Think carefully before securing debts against your home your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
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