What is credit scoring?

Most of the major credit card companies use their own credit scoring systems – normally but not always in conjunction with a credit rating from a credit reference agency.

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Why do I need Credit?: There are a number of benefits associated with paying by credit as opposed to cash or cheques:
How can I protect myself when buying online?: As long as you have not been negligent, you're always fully protected against fraudulent charges when using the Internet to make purchases.
How is interest calculated?: Interest is calculated on a monthly basis on the outstanding balance if full payment has not been received.
Can I Have An Additional Cardholder On My Account?: You can have one or more additional Cardholders on your credit card account with most companies.
My Credit Card is lost or stolen. What should I do?: If you cannot find your credit cards you need to report them as lost or stolen using the emergency number provided by your credit card issuer, this will be a 24 hour/365 days a year number. If you have more than one credit card you will need to ring all the separate companies.

Their own credit scoring system will look at variables such as your individual income and earnings, age, and how long you’ve been in your job and your house. All credit card companies have different criteria and may also apply different criteria to different products. Lenders do not have to tell you their own credit scoring systems is made up.

In basic terms the credit scoring is a mathematical sum indicating a risk level – worked out from your information. This system could mean that even though your credit history is perfectly fine, you are turned down because you recently moved house and changed jobs. If you are turned down for this reason by one loan company, be aware that the situation is likely to be repeated if you apply for another loan with another company.