Credit
Rating
How does a Credit
Rating Work?
In
the United Kingdom there are two credit reference agencies which
carry out this credit rating service. These are the Nottingham-based
company, Experian, and Equifax, in Glasgow. Between them, they carry
details of 44 million UK citizens. Their data banks include details
about your family, credit cards, mortgages, and information on any
unpaid bills, failure to pay hire-purchase debts, or County Court
judgements (known as CCJs) against you - although they will not
appear if paid off within one month. If paid off later, the file
can be marked "satisfied" but the information will be
on their files for six years.
These
credit reference agencies will look at the electoral roll for your
address to see how long you have lived there, plus the financial
details of every adult with the same surname at that address.
Other
available information, supplied by organisations with whom you have
financial dealings with, details how you handle the credit accounts
you already have. These credit records are updated monthly to show
whether you keep payments up to date. There will also be a record
of enquiries made on your name over the past few years, not all
of these for lending purposes. The presence of multiple enquiries,
or "footprints" against your name, irrespective of whether
a loan or a card application was actually proceeded with, can sometimes
be taken to indicate that the individual concerned is a potential
"bad risk".
If
you think your Credit rating is wrong
If
you feel there is an error in your rating and you are being treated
unfairly, read our article on Credit
Reference Information.
OCIS
provide general financial information, we urge you to consult an
Independent
Financial Adviser ( IFA )
before making any important decisions about your finances. |
