Why You Should Know Your Credit Score

When you apply for a loan or credit card, lenders use your credit score to decide whether or not to accept your application. Basically, your credit score is a list of what you've borrowed in the past, whether you've paid it back and if you've been late with any payments. In essence, it lets lenders gauge how much of a risk you are. You'll be credit-scored for anything from a mobile-phone contract to a loan or mortgage. It dictates the amount a lender is willing to give you, as well as the interest rate they lend at – and indeed if they're willing to lend at all. If you're concerned about your credit rating, there's more information about it at websites such as MoneySupermarket.com. Today, it's even harder to get credit. Banks, building societies and other lenders are becoming ever more choosey about who they'll lend to. So if you're credit rating isn't up to scratch, you can say goodbye to that new car loan or beautiful home.