When you make an application for credit, the lending company will look at your credit file with more than one of this credit reference agencies. But how can this influence you?
The 3 credit that is main agencies into the UK – Experian, Equifax and TransUnion – each hold different individual and economic facts about you which forms your credit rating. They use this given information to produce your credit score – and all sorts of with this is taken into account whenever you make an application for credit.
But this is when it gets confusing – there isn’t any such thing as being an universal rating. Each agency has its scale that is own example, Experian’s goes from 0-999; Equifax’s from 0-700; and TransUnion’s (formerly referred to as Callcredit) from 0-710… and each features its own way of determining your rating. You can even have a’ that is‘good with one and ‘fair’ with another.
Whether you’re applying for a card, loan or phone that is mobile – the financial institution is going to make a choice to approve the job centered on your credit score. You might like to be provided a greater interest rate and even declined should your credit history is low. That’s why it is important to test your report before you submit an application for monetary products – and don’t worry, it is an easy task to do.