How do you SCORE?

Turned down for a loan or mortgage? Your credit score could be to blame. Here’s how to find out and improve yours

Your credit rating – or credit score – is used by companies to work out whether you qualify for a credit card, a loan with a low APR and more besides. People who have a high score are usually seen as lower risk, so are more likely to be given credit. Those with a low score may find it much more difficult, but there are steps you can take to improve it.

Bizarrely, if you don’t have any debts or credit cards, you may have a low score, so using a credit card (and paying it off in full each month) could improve your credit rating should you need to take advantage of it in the future

How do I rate?

In the UK, there’s no standardised system of credit scoring. Instead, lenders have their own way of assessing how good (or bad) a risk someone is, so one bank may give you a higher score than another. Credit agencies will rate you on a scale from ‘very poor’ to ‘excellent’ and give you a number. According to the credit report service Noddle, the average UK score is 619, or ‘good’. Information taken from your credit file has the biggest impact on your credit score. It’s a record of how you’ve managed credit – for example, an overdraft, loan, mortgage or something like a pay-monthly mobile phone contract (pay-as-you-go doesn’t count). Your credit file also includes information such as whether you’re on the electoral register and if you’ve been made bankrupt or had a county court judgement registered against you in the last six years (if so, it will be very hard to get credit). Once six years have passed, these disappear from your credit report.

Why do I need to see my credit score?

Getting your credit score from a credit rating agency is well worth doing – you can correct any mistakes on there, such as debts you thought were settled but show up as still live. You can resolve any issues by speaking, then writing, to the credit agency. Your credit report also shows the other people linked to you financially, including current and past partners so you can see the effect they are having on your score.

How do I get my credit report?

You are entitled to see your basic report and score for free and the easiest way is to do it online. Register to see yours at Experian.com, Equifax. com, Noddle.co.uk or Clearscore.com ■ Not online? Write to Equifax Ltd, Customer Service Centre, PO Box 10036, Leicester LE3 4FS or Experian, Customer Support Centre, Experian Ltd, PO Box 8000, Nottingham NG80 7WF