When you submit an application for credit, the financial institution will look at your credit file with a number of regarding the credit guide agencies. But how can this influence you?
The three primary credit guide agencies into the UK – Experian, Equifax and TransUnion – each hold different individual and economic information regarding you which forms your credit score. They normally use this given information to produce your credit score – and all sorts of of the is taken into account whenever you submit an application for credit.
But this is when it gets confusing – there is absolutely no such thing being a score that is universal. Each agency has its very own own scale… for 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 approach to determining your rating. You can have even a ‘good’ rating with one and ‘fair’ with another.
Whether you’re applying for a card, loan or phone that is mobile – the financial institution will likely make a determination to accept the job predicated on your credit history. You might like to be provided an increased rate of interest and even declined if for example the credit history is low. That’s why it is important to test your report it’s easy to do before you apply for financial products – and don’t worry.