What Is a Credit Score?

Everyone with a credit history also has a credit score. Your credit score is a numerical representation of your past credit behaviour. If you have paid debts off in time and in full, then you will have a high credit score. If you have made late payments, or have debts that are still outstanding, then you will have a low credit score.

How Do I Find Out What My Credit Score Is?

To find out what credit score you have, obtain a copy of your credit report. This will also give you your credit score. Knowing your credit score is important because it affects your ability to secure credit from banks and other lending institutions. If you are planning to buy a house, a car, or any other purchase that requires credit, then your credit score will influence your chances of obtaining credit.

If I Have A Bad Credit Score Am I Stuck With It?

It is in the best interests of lending institutions to be able to lend money in order for them to glean the interest. They want to lend the money to you, but not if they have to chase up payments, or worse, not receive payments at all.

If you change your credit behaviour then your credit score will change over time to reflect this, and it will be easier for you to obtain credit in the future. Everyone with a credit report is entitled to one free copy a year from the three nationwide companies. This allows you to check the status of your credit score up to three times a year at no cost.

It also allows you to check the details of your credit report so that your credit score is an accurate representation of your credit history.

If you find that you have a bad debt and work to pay it off, then you can order your credit report and check to make sure that it is removed from your records when payment is complete. Companies are legally obliged to change details in your credit report when they are presented with evidence that details are wrong.

Inaccuracies happen more often than your think, so it is worthwhile checking your details periodically.

Your credit score can have a big impact on your life, so it is worth knowing what your credit score is, and taking steps to improve it.