Credit Score

How To Check Your Credit Score

Your credit score is the primary determinant of your getting that loan. When you apply for a loan, mortgage, or a credit card, one of the first thing every loan manager checks is your credit score. If you have a really poor credit score, you are almost immediately rejected – almost because, the loan manager has to find his “Rejected” stamp. Your credit score shows potential lenders how trustworthy you are, and how capable you are when it comes to fulfilling your repayment obligations. The higher your credit score, the more likely you are to be borrowed whatever loan you apply for.

Knowing your credit score is therefore very important in your loan application process. This post defines and demonstrates the steps , processes and requirements you need when checking your credit score.

Checking your credit score

You can check your credit score in two major ways:

  • Online
  • By post

Checking credit score online

There are three major agencies which provide paid access for individuals interested in discovering their credit rating or score. Each of these agencies maintains credit accounts and transactions across different banks and will have a copy of your credit score. They can be accessed easily via the links below:

  • Experian: link – http://experian.co.uk/consumer/statutory-report.html
  • Equifax: link – http://www.equifax.co.uk/Products/credit/statutory-report.html
  • Callcredit: link – http://www.callcredit.co.uk/stat-report-online/

These agencies charge a standard fee of about £2.

Other online agencies you can retrieve your credit score from include: ClearScore (link –  http://www.clearscore.com/) and Noddle (link – http://www.noddle.co.uk/). These agencies do not charge.

Getting your credit score by post

Applying for your credit score with any of the above mentioned agencies gives you the opportunity to request for an electronic result or have the results sent to you via post.

Other options include going to your bank or credit card provider. Some banks like Tesco bank and Barclays offer free access to credit score reports to their customers.

How to read your credit score

Different credit reference agencies report credit ratings in different ways. Some report it as a score over 999, others as a score over 5. It does not matter what the score is tallied against, all that matters is the percentage. For example, if your score is 4/5 with one credit agency, it could be 800/999 on another platform and still mean the same thing, similarly a score of 2/5 is the same as 400/999. The most important thing you should consider is that your score is as high or close to the denominator as possible.

Credit reference platforms can get it wrong

If you check your credit score and it is not even close to what you are expecting, or it is too low. It is actually possible a mistake was made in determining your credit score. It is actually possible for one of the credit reference platforms to get your credit score wrong. What to do in that case is to check the details in the report very carefully. If there was a payment you are certain you made, that is not recorded on the report, it could affect your score adversely. You can put a “notice of correction” on your report and have the relevant company correct it.