What do the different credit ratings mean?

Credit rating 1

A rating in this banding indicates that you are likely to have difficulty obtaining credit and may find that credit providers will turn you down. When you’re accepted, you will often find that it will be for offers with higher interest rates than you may see advertised.

Credit rating 2

A rating in this banding indicates that you will sometimes be rejected when applying for credit. Where companies offer different interest rates to people depending on their status, if accepted you may tend to be offered a higher than normal rate of interest.

Credit rating 3

A rating within this banding indicates that you may occasionally be rejected when applying for credit. You may find you can’t get all the best deals in the market, and in cases where companies offer different interest rates to people depending on their status, you will tend to be offered a typical or higher rate.

Credit rating 4

A rating within this banding indicates that you’re more likely to be accepted when applying for credit, and are in a position to choose between different credit providers who view you as a low risk.

Credit rating 5

A rating within the top banding indicates that you are usually unlikely to be rejected when applying for credit, and can take advantage of the best deals available in the market.

FAQ: What does my credit rating/score mean?