What is Credit?
The word credit comes from the Latin word credere which means “to believe”. In this case the belief refers to the trust that a lender or creditor has to have in the debtor or borrower that they will repay their debt at a later date. Both parties get something out of the transaction. The borrower gets instant access to funds without having to work to save up the money gradually while the lender gets to levy additional charges such as interest and arrangement fees. Some organisations or services like My Credit Monitor will give the opportunity to carry out free online credit checks.
There are many practical uses for having credit nowadays which range from increased purchasing power by having access to large sums of money, protection against loss and damage on purchases made on a credit card and an ability to demonstrate a reputation for good borrowing and repayment habits, which should encourage other would be lenders to give you credit in the future on favourable terms. Read more
Christmas can be an expensive time of year for millions across the world. With more of us spending more each year on friends and family, everything from presents to the turkey itself, it can be a time where many of us lose touch with our spending. We took a look into the UK’s festive spending habits, what we spend the most on and how to save a bit of money over the holidays. Read more
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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.