Your credit rating is important to lenders because it is calculated by looking at your past behaviour when involved in financial agreements. This helps them predict your likely behaviour if they accept your current application for credit. Your credit rating is important to you because it can help or hinder your financial plans.

Do you intend on owning your own home one day? Are you looking to take on a new mobile phone contract? Do you want a new car but have not got the funds to pay the full amount? In each case you will need to partake in a financial agreement with a company or lender. When you apply you will be assessed, and your credit file will be taken into consideration during that assessment.

Being rejected for credit can be deeply frustrating. However sometimes you may just not be what the lender is looking for. Different lenders are looking for different things, so a rejection from one does not automatically mean that you will be rejected by another.

Some borrowers are unattractive to almost all lenders. This can be the case if you have a poor credit history, having struggled with repaying previous financial agreements. This said, there are a very few lenders who may accept applications for credit from borrowers with poor credit ratings, but expect to be charged significantly more.

So What Effects My Credit Rating?