02 Feb 5 Ways to Protect Your Credit Score
How much would you like?
Rates from 49.9% APR to max 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: ?250 borrowed for 30 days. Total amount repayable is ?. Interest charged is ?, annual interest rate of 292% (fixed). Representative % APR (variable).
Why do Banks Conduct Credit Checks?
Credit scoring carries on whether you like it or not. Several credit reference agencies, including familiar companies such as Equifax and Experian, compile financial information about UK consumers. Beginning with your earliest credit relationships, the agencies keep track of your credit usage and payment history. The data ultimately contributes to your credit rating, which is typically expressed as a three-digit “score.”
Traditional lenders rely upon credit scoring when reviewing loan applicants; strict credit standards are applied. Exacting credit requirements help lenders reduce risk, allowing them to lend money to applicants most likely to follow through with repayment. If your score doesn't measure up to an institution's credit threshold, you may be passed over for funding.
UK finance options include everything from multi-decade mortgages to ?1,000 loans, aimed at short-term spending demands. Stringent credit scoring requirements at banks age, but online lenders sometimes have greater flexibility approving imperfect applicants.
Although credit reference agencies operate independently, your actions ultimately control your credit score. In general, positive credit outcomes strengthen your credit rating, whilst poor results with creditors have the opposite effect.