Credit scores are numerical representations of your creditworthiness, ranging from 0 to 999. The higher the score, the better your creditworthiness, which means you are more likely to be approved for credit and offered better interest rates.
Essentially, your credit score shows how well you’ve dealt with credit in the past.
Understanding your credit report
A summary of your credit history, including the kinds of credit accounts you've had in the past and your payment history, may be found in your credit report. You should be aware that you can have many credit reports.
Checking your credit score and report
Start by getting your credit report from the three major credit reference agencies in the UK: Equifax, Experian, and TransUnion. By law, you are entitled to one free credit report per year from each agency. Reviewing all three reports can provide you with a comprehensive view of your credit history.
A number of online platforms (such as Credit Karma, Clearscore, and Checkmyfile) offer free credit score checks, allowing you to monitor your credit score regularly. These services provide a convenient way to keep track of any changes to your score and identify potential issues.
Your credit score
Regularly checking your credit score is a vital aspect of managing your finances effectively. For more information on managing your finances, check out our article on it here. Understanding your credit score and how to check it will put you in good stead when it comes to applying for a mortgage.
Important information
Your home may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend on your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
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