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When you apply for a credit card, the credit
card company will use a Credit Reference Agency to determine
your credit worthiness. These agencies hold information on about
nearly every adult in the UK and will provide a report to the
credit card outlining your credit history.
Credit Reference Agencies do not offer an opinion on your credit
worthiness and it is the card issuer who either approves or
declines the application for a credit card based on the
information provided. The type of information held includes
details of previous credit agreements you have entered into and
details of how these accounts were conducted, any County Court
Judgements (CCJ) registered against your name will be shown
together with any mortgage arrears. The record will also show
details of every person registered at a particular address and
any credit problems they may have encountered.
You can do the simple
quiz below to give yourself an idea what your credit score
(also known as credit rating) is likely to be.
Just answer the
questions below and see how you score and what that result
means.
THE TEST
1 Are
you registered to vote at your present address? Yes/No
2 Do
you have at least two active credit accounts, such as a credit
card, store card or loan? Yes/No
3 Are
all your credit account payments up to date? Yes/No
4 Have
you missed any payments on your credit accounts in the last two
years? Yes/No
5 Do
you have any County Court Judgments or have you been declared
bankrupt? Yes/No
6 Have
you ever defaulted on a credit agreement? Yes/No
7 Have
you applied for more than two items of credit in the last six
months? Yes/No
YOUR SCORE
1 Yes
= 10. No = 0.
2 Yes
= 10. No = 0.
3 Yes
= 15. No = 0.
4 Yes
= 0. No = 10.
5 Yes
= 0. No = 25.
6 Yes
= 0. No = 25.
7 Yes
= 0. No = 5.
WHAT IT MEANS
90-100: Excellent.
Your score shows that you would be a strong candidate for
credit.
70-85: Good.
Your score shows that you have a good chance of being granted
credit.
50-65: Fair.
Your score shows you may have some problems obtaining credit.
0-45: Poor.
Your score shows you may have considerable difficulties in
obtaining credit.
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