What is My Credit Score?
A credit score is a points value awarded to you by a lender based on an examination of your credit file and credit history. The higher your credit score the more likely you are to be able to obtain credit from banks and other lenders. Your credit report is supplied by one of the three credit reference agencies in the UK which are Callcredit, Experian and Equifax. Nowadays many companies and organisations like MyCreditMonitor work alongside them to offer a check my credit score service to consumers.
In essence your credit score is made up of points that you are awarded for positive borrowing habits such as always paying your credit card on time or subtracted for demonstrating a track record that is more likely to make lenders wary about letting you borrow money such as defaulting on past payments or making a lot of previously unsuccessful applications for credit.
Why does Christmas spending often lead to New Year debt?
We are all familiar with the extra costs associated with Christmas such as gifts for friends and family, increased spending on food and alcohol especially for those hosting parties or Christmas dinner and that general pressure to go forth, socialise and make merry at what is meant to be a magical time of the year.
However with the average UK household set to spend in excess of £800 this year on Christmas according to research from YouGov and research this time last year from the Money Advice Service predicting that 34% of Britons would start 2014 in debt as a direct result of Christmas spending, the financial repercussions become hard to ignore. The all too likely unfortunate consequence is something of a financial hangover come January when the credit card statements hit the door mat or the email inbox.
What is a credit score? A question many of us ask, but not all can fully answer with confidence. With so many aspects which can have an impact on your credit score it can be hard to completely understand how to manage one. From applying for a mortgage to achieving a lower interest rate, your credit score is vital indicator for lenders to decide how credit-worthy you are.
We decided to take a look at what exactly is a credit score, what’s contained in a report and where you can get your free credit report to set you on the way to improving your credit score.
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