Credit scoring is a technique used by Financial Institutions to help them assess the risk involved in extending credit facilities to someone. Based on the level of risk calculated (i.e. the credit score) they will decide whether to extend the facilities applied for. Calculating a credit score for each applicant allows the lender to assess each application fairly using the same criteria. The credit score is derived from the information provided on the credit application form, data provided by a credit reference agency and details of any existing relationship.
Details that the creditors may look at to give you a credit score include:
