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.
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.
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