Information on Credit Scoring

A credit score is a snap shot of your credit risk (ie how likely you are to repay a debt and repay it on time) at a specific point in time. The higher your score, the lower the risk. Your credit score is calculated using a mathematical formula that evaluates information on your credit report and compares it with the information patterns of millions of other credit reports, the score is then used to determine your future credit risk.

The 5 main factors to determine your score are :-

  1. Payment History
  2. Amount Owed
  3. Length of Credit History
  4. New Credit
  5. Types of Credit in use

Your credit file is continually updated with new information from your creditors. Generally, people with high scores pay bills on time, keep low balances on credit cards and only take new credit when it is needed. Speak your adviser for further information on credit scoring.

Details on Loans for the Self Employed

There are many lenders who are happy to arrange a loan for you please read on...

Self-employed with audited accounts - Most lenders will be happy to offer the same interest rates that employed people enjoy.

Self-employed with no accounts (non-status) - There are lenders who are happy to offer the same rates as those self employed people who have accounts.

Self-employed with a low credit rating - There are many lenders who will accommodate this too.

Poor Credit History

Your credit history obviously has an effect but there are many lenders who are still happy to provide loans read on...

Loans are placed everyday for people that have had any or all of the following, including previous bad or adverse credit history.


- These occur if you have made late payments to things such as credit cards or loans.

County Court Judgment (CCJ's)

- These occur for non payment of a loan or credit card, they also occur for non payment of utility bills i.e. telephone or electricity etc. As these are issued by a court you would normally have been summonsed first.

Mortgage Arrears

- If a monthly payment is missed this is classed as arrears.

Bankrupts and IVA repair

- There are lenders who are able to lend in these circumstances, but these will have to be cleared with part of the loan.