What Counts Towards Credit Rating?

Credit rating is the measure that’s used by most lenders to determine your eligibility as a borrower. In simple terms, a credit rating factors in your financial history to build a picture of you as a borrower. If you have a poor credit score than this can affect your chances of getting a credit card or certain loans.

But what are the factors that affect a credit score, how is it calculated and how do you change it?

There are numerous factors that are looked at to determine your credit score, such as: Your payment history, i.e. how you managed payments in the past, if you had a credit card are there any records of missed or late payments? Public records are also factored in, e.g. have you been declared bankrupt in the past. Less obvious factors might play a part too, e.g. has your credit report been searched for numerous times in recent months.

The good news is that your credit score can be improved. When you take out a loan or credit card in future making payments on time and not missing payments can improve your credit score. If you are still struggling with a bad credit score then there are other options too, for instance if you’re looking for cars on finance then you can get something called car finance bad credit.

Getting car finance with bad credit is not only possible, but it’s a great way to improve your credit score too, as long as you make payments on time and don’t miss payments.