How credit is calculated

How is my credit rating calculated?

Whenever you apply for credit, the credit card company or high street store will probably check your credit score using information from a credit reference agency like Experian, Equifax or Call Credit. They give you a credit score using a points system based on your credit history. If you get a low credit score, you may have trouble finding credit.

How did I get a bad credit score?

A bad credit score results from a bad credit history. This could include any of the following:

1. County Court Judgements
2. Missed payments on borrowings
3. Being new to credit, so having no credit history
4. Not being on the electoral roll
5. Giving false details on your credit applications

What can I do about a bad credit score?

If a lender turns you down for credit, ask them which agency they used to find out your score and write to them. The credit reference agency has to reply within seven days. Wrong information can be removed.

If you have a genuine bad credit history then the next step is to rebuild your credit score. Our Vanquis Visa Card could be a great help. See how to improve your credit rating here.