A Credit Rating demonstrates the credit worthiness of a debtor. In other words, how likely you are to pay back the money you owe. Credit worthiness is measured in the level of risk you are deemed to be. However, the amount of risk and interest charged is discretionary to the terms of the many institutions willing to loan money in the market. Therefore, even if you are deemed too high risk for one institution, you may still be accepted by other institutions. But be aware that generally you pay higher interest the higher the risk you are.

There are many factors that could affect your credit rating:

• Court Records - Any debt problems, CCJs, Charging orders or bankruptcy etc. will generally negatively effect your credit rating

• Fraud Information - Your credit rating will also be affected if you (or your stolen identity) has undergone fradulent activity.

• Electoral Information - This is a significant factor that can determine your credit rating as it can inform lenders who lives with whom so you should be on the electoral role.

• Previous Credit checks and linked Data - Lots of credit checks or financial information you may have been linked to in the past can affect your current credit rating.

• Account data: This is one of the most prevalent factors to determing your credit rating. This is where institutions share their experiences and opinions of your credit worthiness with other lenders.

If you are struggling with your debts and your credit rating is suffering, it may be beneficial to look into a debt solution such as an Individual Voluntary Agreement (IVA) or a Debt Management Plan (DMP). Please enquire for further information.