Credit Rating
Your credit rating is a score based upon your past borrowing activities – whether you made repayments on time, if you have any outstanding debts, and other more serious matters such as whether you have ever been bankrupt.
Lenders have their own criteria for determining your credit rating. Some lenders may treat aspects of your credit rating differently. For example, if you have a county court judgement against your name it may mean that one company will not feel able to offer you a loan, whereas another will still happily lend to you.
Your credit rating will also affect how much interest you pay on loans. The better your credit rating, the better the interest rate will be.
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