What is a credit rating?

Your credit rating is an assessment of your credit worthiness based primarily upon your history of borrowing and repayment. It’s shown as a score out of 5. The higher your credit rating the lower your credit risk and the more likely you are to have your application for credit accepted.

Remember a high credit rating is not a guarantee that you will be accepted for any product that you apply for, nor does a lower one mean that you will be turned down as this is at the sole discretion of the product provider. Every credit provider will have their own rules and use a combination of the following to help them make their decision:

  1. Information supplied in your application
  2. Information supplied by a credit reference agency such as TransUnion (formerly Callcredit). We help lenders check if you're on the electoral roll at your current address, if you've paid your credit commitments on time and if you have insolvencies or County Court Judgments
  3. Details about any existing accounts you already have with the lender
  4. Their own policies and rules

FAQ: What does my credit rating/score mean?