What is my Credit Score and what does it mean?

The information in your credit report is key to getting the loans you need – but it is only half the story.

Before deciding whether or not to lend money, many organisations take your report, plus additional information included on your application form, and generate a credit score. This score indicates the risk involved in granting you credit. Over the years, automated scoring has proved to be more accurate and consistent than subjective human judgement. It also allows lenders to make decisions more quickly.

Computer programs score your application by looking at how past customers with similar profiles repaid their credit. Every lender uses a slightly different formula that represents its own and industry experience and these may be adjusted according to the type of credit you are applying for. So every application could generate a different credit score.

Your credit score will also change over time, as the information in your credit report and on each credit application form is updated.

If you are thinking about applying for credit, it’s well worth ordering your National Credit Score as it is an excellent guide to how lenders may assess the information held on your report. Your score will be a number between 0 and 1,000. Generally, the higher your score, the easier you will find it to get loans and credit.  

If you are not scoring as well as you would like, you will find advice, hints and tips on the site that may help you to improve your score. You can order a new score at any time, to monitor your progress.

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