What is a credit rating?
A credit rating is used by businesses to work out how risky it is for them to lend you money. It's a way of predicting your future behaviour with credit. Your credit rating is worked out using your credit report, which is put together by credit reference agencies. Credit reports are files full of financial information about you, and can include:
- Outstanding balances on credit cards and loans
- Missed payments, arrears or defaults
- Address history
- Court records