Credit Scoring

When a lender is considering a mortgage application, they will look at your credit profile.  They want to feel confident that if they lend you money, you will repay it on time.

A credit profile contains details about any debts you currently have or have had in the last 6 years.  This includes loans, credit cards, bank accounts, mortgages and even some mobile phone agreements.  It shows details of who you have borrowed from, how much you borrowed and how much you pay each month.  It also shows whether your payments were made on time and if they weren’t, how far into arrears you got.

They also provide a credit score which helps work out how likely you are to be leant money.  The better your credit score is, the more likely it is that you will be given credit.

Each lender takes a slightly different approach to how they assess the information that is on your credit profile.  As a rule of thumb, the better your credit score is, the more choice of lenders you will have and therefore the better the interest rate is likely to be.

Lenders will obtain a copy of your credit profile from a credit reference agency.  There are a few companies that do this but the three most common ones that lenders use are Equifax, Experian and Transunion.

It is possible to get a copy of your credit report so you can see all the information that is held on you.  This is a good idea if you are considering getting a mortgage or other loan.

We recommend Checkmyfile.  They produce a credit report that has the results of Experian, Equifax and Transunion in one report. To get a free 30 day trial with Checkmyfile click on the button below (new customers only).