What is my credit score?
Your credit score is a number calculated by a company called a Credit Reporting Body (CRB) and it’s based on an analysis of the credit file they create about you. It is a file containing the collection of credit-related data they gather about you and your financial history. It is reported as a history and summarised as an overall total score. Your score may be used by some lenders to decide whether to lend you money, how much they will lend you and what interest rate will be offered to you.
Your credit score is rated on a five-point scale (excellent, very good, good, average and below average). It is the position of your score on this scale that helps lenders work out how risky it is for them to lend to you:
Excellent - you are highly unlikely to have any adverse events – like defaults or arrears – harming your credit score in the next 12 months
Very good - you are unlikely to have an adverse event in the next 12 months
Good - you are less likely to experience an adverse event on your credit report in the next year
Average - you are likely to experience an adverse event in the next year
Below average - you are more likely to have an adverse event being listed on your credit report in the next year
The good news is that while traditional lenders may not provide options for applicants with lower credit scores, Pepper Money may be able to help. We have a range of loan products including one specifically designed to help if you have previous credit history issues.