Your Credit Rating. Your Credit Rating 1.
What affects my getting a loan? Most lenders look for information about your income, employment, living costs and existing loan repayments to help them decide whether you can afford to repay a loan. Most lenders also want to look at your credit rating.
It can be a good indication of how likely you are to pay back the money. You are likely to have a positive credit rating if you have a good history of repayment on previous loans.
Your credit rating may be poor if you missed repayments on a regular basis or failed to pay off a loan in the past. It is also possible that ICB does not have any credit records in relation to you. This occurs if you have no active loans within the past five years or your data has not been registered with ICB by the relevant member.
How do lenders know about my previous loans? ICB holds information about borrowers and their loans for 5 years go the loan is closed. Your credit report includes: You might make a mistake in completing your direct debit form and miss a loan repayment on the due date; or.
Your lender might have agreed to let you postpone payments for a period but forgot to change the report it sends to ICB. Faster processing of your application: It is quicker for a lender to process a number than a credit report. Fairer decision-making: A Credit Score is an objective indicator of risk which cjeck not take into consideration factors onkine as gender, race, religion or nationality; all loan applications are treated objectively and consistently.
More consistent decision-making: Since a Credit Score consistently takes into account both positive and negative information present in the Credit Report it has the advantage over a manual decision-making environment where it is possible that some negative information may exercise a disproportionate effect upon the outcome.