What makes a good or excellent credit score? And what influences it? When it comes to applying for credit and understanding what information is actually involved in the final decision, things get a little complex.
Whenever you apply for a loan, overdraft, mortgage, credit card or other forms of credit, the lender in question will refer to your credit score.
Whenever you apply for credit – be it a loan, mortgage, car insurance or mobile phone contract – the lender in question will check your credit report to get an understanding of your credit history.
When applying for any form of credit, having a good credit score is incredibly important and it will ultimately affect all financial commitments in your life: loans, mortgages, credit cards and many other forms of credit are dependent on you having a good credit score.
Poor credit ratings can result in one lender after the other turning you down. Sometimes these poor ratings are the result of an inability to make repayments or reckless spending in the past. There are, however, times when other factors affect your rating without you actually having done anything wrong. Here are some of these factors.