Citizens' Advice Bureau
The Citizen's Advice Bureau is a free service that is available to give basic legal advice on a wide range of topics from your rights at work to money matters. There are Citizens' Advice Bureau all around the UK and they also offer a great deal of online advice too.
County Court Judgement
A County Court Judgment, also known as a CCJ, is a court order that can be registered against you when you have been taken to court for failing to repay money that you owe. When you apply for any kind of credit you are usually asked if you have any CCJs against your name.
Credit is when a company agrees to provide you with a product or service before you pay for it in full. In exchange for providing it before full payment's received you generally have to pay a fixed amount each week, month or year with interest added.
This is a legally binding agreement between a business and a customer in which the business agrees to provide goods or services before full payment is received and the customer agrees to pay a specified amount at agreed intervals, usually including an additional amount of interest.
A credit allowance, also sometimes called a credit limit, is the total amount of credit that a company agrees to provide to a customer.
Credit Bureau Check
Before agreeing to give credit a business will do a credit bureau check on a customer. This gives information about their credit history, whether they have failed to make any payments to creditors in the past and also how many credit checks have been made on the person in the past.
A person's credit file contains information about their credit history including their payment history, the amount of credit they have outstanding and any county court judgements they may have against them. Creditors use this information to decide whether or not to offer credit and what interest rate to charge.
A person's credit rating is a number which expresses what kind of credit risk they are to a lender. It is calculated by a credit reference agency using a wide range of information including payment history, levels of debt and time spent living at the same address.
Credit Reference Agency (CRA)
This is an agency that gathers a person's credit information together and uses it to calculate their credit rating. Potential creditors like banks, credit card companies and other businesses use the credit reference agency to provide information about a person's creditworthiness.
A person's credit score, also sometimes known as a credit rating, is a score measured a set number of criteria to measure their level of creditworthiness. It is calculated by a credit reference agency using information about their credit history.
An assessment of the likelihood that a borrower will default on his or her debt obligations. It is based upon factors, such as his/her history of repayment and credit score.