Credit Scores

A credit score or credit rating is used by lenders to help assess the risk that the borrower will repay the debt or default on repayments.

Your credit rating could influence if you’ll be accepted for the application, how much you can borrow and at what rate.

Your credit rating is based on a number of factors ranging from how you’ve behaved in the past to if you are on the electoral roll. There are a few different providers of credit scoring services and your score may be different with each, but they should all be roughly the same. The higher your credit rating, the more likely you’ll be accepted for credit.

You can check your credit score for free online, below are some of the providers you can do this with, but be aware that you may need to cancel any membership after a free trial period ends.

If you have checked your credit score and you think it could be improved, you could try some of the methods on the following list to boost yours:

• Try not to make multiple credit applications in the same month.
• Stay with the same bank for a long time.
• Avoid moving house too often.
• Register on the electoral roll.
• Set up Direct Debits to repay debt on time.
• Clear any outstanding debt.
• Use a well-managed credit card, paying off in full each month.
• Stay away from payday loans.
• Remove any people linked to you on your credit file, who you are no longer associated with.

For more information on how the University can help please click on the following link:

https://www.linc-on.co.uk/financial-wellbeing.aspx