Credit Check
You've probably heard of credit scoring. Most major financial orginisations use it to assess whether they should lend money to people who apply for credit. Yet it might not be obvious how credit scoring works.
So what is credit scoring?
Whenever you apply to a financial organisation for credit such as a loan, credit card or mortgage, they may use credit scoring to work out whether to accept your application. Credit scoring is based on a system that predicts what might happen with your credit account based on the past performance of others, similar accounts of yours.
Credit Scoring works by awarding points to all relevant parts of your application and then adding these points together to make a score. Its this final score that lenders use to assess the risk involved in providing credit and decide whether they can go ahead and accept your application.
If you are looking to apply for a mortgage in the near future its a good idea to check your credit score first as you may improve your score