Why is your credit score important?

Why is a good credit score so important? Our spokesperson explains all...

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You’re looking at this and wondering, how on earth does it work? It’s a complete mystery, but I can help.

The same is true for your credit score. It’s what people use to decide whether to lend you money, or offer you credit.

You know you have one, but not really how it works. You have no control over it; it’s difficult to know what your own one is - yet it can change the course of your entire life. Here’s what you need to know in order to protect your credit score.

Pay off your minimum credit card debt every month, try not to go over your overdraft limit, don’t forget to pay your bills on time… direct debits are the easiest way to do this, AND sign up to the electoral roll at your current address.

The little things all add up and it’ll be important if you need a credit card or a loan.

One more thing worth knowing. Loads of refused applications can set alarm bells ringing with lenders and harm your credit score, so don’t rush in. Look at the eligibility criteria before applying for a new loan or card, and avoid being refused. Some price comparison websites even have a handy tool that allows you to work all this out.

You see, most things can be easily explained once you know how they work.

Not such a mystery at all.

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