What is my Credit Score?

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Your credit score is a number that lenders can sometimes use to decide whether to offer you credit. They may use your credit history to calculate your credit score which shows them how much of a risk it is to lend to you. The better your credit score, the more chance you have of being accepted for:

  • Credit cards
  • Loans
  • Mortgages
  • Car financing
  • Mobile phone contracts
  • Buy now, pay later offers
  • Rental agreements
  • Store cards
  • Overdrafts
  • Other types of credit

How is your credit score calculated?

When you apply for credit, the lender has some decisions to make:

  • Should they loan you the money?
  • How much should they let you borrow?
  • How much interest will they charge?
  • What is the risk of you not making repayments?

To make these decisions, lenders may check your credit history. This is a record of your previous borrowing and how reliable you were at paying money back.

Your credit history can include details of what credit you have had in the past, how much credit you currently have and any defaulted payments. They might also check whether you have any County Court Judgements (CCJs) or if you have declared bankruptcy or applied for a Debt Relief Order.  

Lenders may use a credit reference agency to check your credit history. There are three main credit reference agencies in the UK; Experian, Equifax and Callcredit. Lenders may use one or more of these agencies to help decide whether to offer you credit. 

Every lender has different criteria for scoring. Just because one lender rejects an application, it doesn’t mean that you won’t get credit from another lender. However, if you apply for lots of credit at once and get lots of rejected applications it could have a negative impact. 

How can you improve your credit score?

Each lender scores differently and will be looking for different things so there is no way to guarantee you will be accepted. However,there are some things you can do to improve your chances of getting approved for credit.

  • Register to vote so you are on the electoral roll
  • Pay bills on time
  • Check for fraudulent activity- make sure your details aren’t being used by somebody else
  • Avoid County Court Judgements (CCJs)
  • Clear any high levels of debt
  • Avoid applying for lots of credit at once

Doing these things can help you improve your credit score which may help you get approved for credit. It is important to only borrow money that you can afford to pay back. Before you apply for any credit, make sure you understand the repayment terms and how much you will have to repay including interest.

About Morses Club

At Morses Club, we specialise in small cash loans to help with unexpected expenses. All applications are discussed face to face and acceptance is based on your individual circumstances.

In some cases, we can offer loans if you have been refused credit from another lender. This isn’t guaranteed but, if you’ve been considering bad credit loans, then we may be able to help. You can find out more about our loans here

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Representative Example:

£200 loan repayable over 20 weeks at £15.00 per week, Rate of interest 50% fixed; Representative 756.5% APR, Total Amount Payable is £300.