Your Credit Rating Explained
Well the credit rating - or credit score - is a figure that lenders use to work out what risk they will take on if they decide to offer you money (credit). It's calculated from lots of information and the details you provide in your application for a particular product such as a credit card.
If you want to find out what's in your credit report which is this rather mysterious sounding thing, then it is actually fairly mundane.
The sort of information that will typically appear in this document will include things like:
- whether you rent or own your home
- address history (Recent)
- your income on an annual basis
- any credit card balances or loan balances that you have outstanding
What then happens is that individual lenders set levels or scores that you need to achieve based on an application for each particular product they offer.
Some will set levels higher and lower therefore you could get turned down for a product at one place whilst being offered it elsewhere by another lender.
There are several agencies that offer access to credit reports so if you actually want to see yours you should be able to do so online, note that there is usually a fee charged in order to see your credit report.
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