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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How can I keep my credit card secure?: Like anything, a credit card can be stolen or used without your knowledge, so follow these simple rules to keep your credit card secure:
How is interest calculated?: Interest is calculated on a monthly basis on the outstanding balance if full payment has not been received.
How much will I have to pay each month?: How much you have to pay back each month depends entirely on how much you owe – however the general rule for most credit card companies is that you either make a minimum payment of 2% of the balance or £5, whichever is the higher figure.
How do I make Cash withdrawals?: You can withdraw cash from any cash machine, just like you can withdraw cash from your own bank account.
What is Sentinel® Card Protection Insurance?: Losing your credit cards or having them stolen can be a real inconvenience, not to mention a worry – especially if you’re abroad. The Sentinel® Card Protection scheme takes all the worry away, and with just one free phone call from anywhere in the world Sentinel® will immediately inform all your card issuers that you need replacement cards should they be lost or stolen.

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.