| Before reading this article, here is a number of | | | | for a particular product. A Credit Score looks at your |
| definitions you may find helpful. A default is meant to | | | | current and past financial history, plus other personal |
| refer to where you have violated your contractual | | | | details, and using mathematics, analyses what type |
| requirements. When you have skipped your payment | | | | of 'risk' you are. |
| on a mail order account, for instance, they can file a | | | | By 'risk' we mean whether it is likely you'll pay back |
| Notice of Default on to your credit record. This will | | | | the money borrowed; whether you can really afford |
| have a negative effect on your credit report in the | | | | the repayments etc. |
| future when you would like to get additional | | | | Factors that can affect your score include: |
| borrowing. | | | | 1. late or missed payments in the past |
| A 'CCJ' is actually short for County Court Judgement. | | | | 2. County Court Judgements and arrears |
| A CCJ is a judgement established in a County Court | | | | 3. How much you currently owe - even if all your |
| against someone who remains in debt to a third | | | | payments are up to date |
| party (another person or company) or when they | | | | 4. You not being on the electoral roll |
| have not met the provisions of a credit agreement. | | | | 5. Applying for lots of new credit accounts - this is |
| A CCJ will establish an appropriate repayment plan in | | | | viewed that you are someone getting into financial |
| order that the indebted person will eventually be able | | | | trouble |
| to payback the money they owe. CCJ's are | | | | 6. The length of your credit history |
| documented on official public record and will have an | | | | 7. Financial associations - other people listed on your |
| effect on the debtor's potential of securing any more | | | | credit file that have bad debts can affect your credit |
| credit for as much as 72 months. | | | | rating |
| Equifax is a key UK credit reference agencies. Equifax | | | | Why Your Score Matters |
| collects all your financial data from various sources to | | | | Your Credit Scores matters because it is probably |
| develop a report that presents your personal financial | | | | the most influential factor used by loan companies in |
| history - i.e. your credit report. If you fill out an | | | | deciding whether they will give you a loan/mortgage |
| application for credit, lenders will study your credit file | | | | other credit. |
| to see your financial past. You can ask for a duplicate | | | | However, it is the lender who makes the final |
| of your report at any point to see that all is in order. | | | | decision and they may well take in to account |
| The Equifax internet site has a great deal of useful | | | | reasons for past credit problems. Apart from |
| advice on making proper financial decisions and | | | | checking out your financial history, they will also need |
| protecting yourself from fraudulent schemes. | | | | to look at your occupation; whether you have any |
| A Credit Score is something used by loan, mortgage | | | | equity in your mortgage, your income and savings |
| and credit companies to decide whether you qualify | | | | etc. |