Banks and building societies use a variety of information to determine whether they will lend to you and the interest rate.
Following the introduction of stricter lending criteria in 2014 it is more important than ever before to have a good credit score if you want to get a mortgage.
One way of finding out about your credit score is to get a credit check from a reference agency.
One such company is Experian, which now offers free credit checks as part of a new credit comparison service which can help you shop around for products you are most likely to be accepted for.
CreditMatcher matches you to loans, credit cards and mortgages based on the information you provide and your credit score information.
Experian’s Clive Lawson said: “Having good control of your money is a big factor for most people’s overall happiness, and a lot of people don’t realise that your credit score is like a temperature gauge for your financial wellbeing. By making the Experian Credit Score free, we want to help everyone take a quick and easy first step to realising their financial ambitions.
“We are giving people access to their Experian Credit Score and showing people what they can do with it – to get great credit deals and ultimately save money. The Experian Credit Score is available now as part of CreditMatcher, our new comparison service that gives people access to deals on credit cards and loans they’re more likely to be accepted for.”
One major advantage of CreditMatcher is that it allows you to check the deals available to you before you apply without actually registering the applications or searches on your credit record.
You can also find out about the likelihood of being accepted before you apply and it can help you understand howyour credit history may affect your chances of getting credit applications approved in the future.
Each time you apply for credit, a hard search is recorded on your credit report. Multiple applications can damage your score and are visible to potential lenders, who may view these as a negative factor when assessing applications. CreditMatcher leaves a soft search which lenders cannot see, so searching and comparing credit products doesn’t affect your creditworthiness in any way.
