Whats my credit rating and why does it get checked every time I apply for a loan or credit card?
A credit rating is something that is used by finance houses to see if someone is capable of keeping up payments. It looks up certain things like history of bank accounts, your address – which is very important, and it looks at your past financial history. If you are being refused a credit card you either have bad debts, a bad credit rating, or the place you live in has a bad rating attached to it. If you are in rented accommodation it can be difficult to get credit cards. If you haven’t had a savings account for very long you will also have a low credit rating. There’s no quick way to improve your credit rating but you first need to check your credit records through Experian and Equifax, they are the two major companies that hold credit records. If there is a problem with the address because of people who have lived there in the past you can wipe it off proving it’s not you.
