What does a bad credit score look like? In order to understand answer “What does a Bad Credit Score Look Like?” we’re going to give you a little background information. …
Category: Credit Score
In the world of borrowing and lending, your credit score is a vital piece of information.
Major lenders have highly technical assessment procedures to interpret your credit score and then decide whether or not you are a good risk or a bad risk. Once this decision has been made, very few banks will change their mind.
In an odd way, banks asses a credit score in a similar way to a life assurance company looking at your life expectancy from a Dr’s report. It all comes down to statistics and probability.
Therefore, it is important that your details are correct, up to date and as good as possible. In other words, you need to do well. That is, if you plan to borrow money in the next few years.
A poor score can potentially cause many problems. For example, it may make it difficult to get the kind of job you want or life assurance cover.
For many people employed in financial services or cash handling positions, a clean credit history is very important. Some employers take the extra step of searching the credit file’s of their staff every 90 or 120 days.
The information will be used to assess your ability to borrow for a mortgage, secured charge, car or personal loan, credit or store card and even an overdraft. It is used that much!
Over the next few pages we’ll look into the subject of credit scores so that you can begin to understand how it will effect you. As you will see, there are some things that harm your rating (some very seriously) and other things that boost your rating.