Credit Scoring

Each enterprise will have they own methodology in determining its reasoning behind your score. To ensure that the information is accurate there are a few tips to follows so as to preserve your score.

You can apply to go on the electoral register at any time of year. This will give some proof as to where you live and will assist the scoring process.

Contact your local council for further assistance if required. You should make sure you fill in the electoral registration form correctly or contact your local council if you move at any time.

When being measured for credit, a lender may also take into account factors such as your age, occupation and whether you are a homeowner or not (the information you give them on your credit application). This information is required to test your solvency and second rate equitable standing scores

Lenders often access this information and the information on your credit report using a process known as credit scoring (are you good for the money and can you pay in accordance with the contract terms).

The lender may give points to each piece of information it has and then add them up to give you a credit score. If you do not score well on the model they use or above the particular company’s pass level, then you may well be turned down. The score might take into account the information on your credit report. Each lender has their own policy guidelines that they follow when making lending decisions.

Computerised Scoring

If the decision was made solely using a computerised scoring system you can ask the lender to look at your application again if you believe that the inputted facts are inaccurate or wrong. This review should be done manually and not using an automated system. You may have to supply extra information to support your application. In short the more information they have then the better chance a timeshare consumer has of increasing his/her score.

Every time you apply for credit a ‘search’ by the lender is marked on your credit report so it is wise to note that consumers should only make applications when ready to do so. Many applications might result is some lenders turning you down, which could have an adverse effect on the credit report. Searches can stay on your file for different times depending upon which credit reference agency was employed. Experian holds search entries for 12 months, Equifax and Call-credit for up to 24 months. At all times consumer should act reasonably to prevent inadvertent low scores due to repeated applications as they might be viewed negatively. Some credit scoring companies allow for a free month’s trial to view your credit files. Read their terms carefully to ensure you know exactly when the ‘free’ part ends.

Ask the lender if they are using a credit score to choose whether or not to give you credit. If the company uses a computerised system you should be given substantive information about how credit scoring works and the type of things the scorer has taken into account. If you are refused credit they should tell you why you did not pass, so that you can either challenge the information stored or have an opportunity to reflect and act to improve the score you have been given.


Last modified: August 24, 2015