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Firstly, please tell us your...
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In the last 6 years, have you had any...
In the last 6 years, have you had any of the following?
A credit rating groups customers into five broad categories based on their level of creditworthiness. A one star score reflects a very weak credit score and would be viewed by lenders as being the highest risk for lending. A five star credit rating is exclusively for those with a very high credit score which indicates they are a very low default risk. Predictably a three star score represents an 'average' customer.
A credit score more accurately indicates your risk of default based on statistical analysis of your credit file information. A range of 0-1000 usually applies, with 0 being the worst credit score and 1000 being the best. An average score is around 750.
The score represents the likelihood that you will maintain payments on the credit agreement.
Each lender will have their own lending criteria which may even differ from product to product. This criteria will include a credit score cut-off point, where those with a higher score will be accepted and those will a lower score will be rejected.
In reality a lender may have different score levels for different interest rates also, so you may be rejected at the lowest rates and instead be offered the product at a higher APR. A lender may adjust their cut-off points depending on how much business they are looking to get at a certain time.
Some cards offer rewards for using them regularly, such as cashback or air miles. If you always clear the full balance on your card each month, you can benefit from these rewards at no cost.
If you are not able to clear your credit card each and every month, a rewards card doesn’t make sense. Go for a low APR rate card instead, as the interest you’ll be paying will far exceed the value of any rewards. The best reward cards may have high requirements for minimum income, or only accept those with a decent credit rating.
If you know your credit rating, select it by hovering your mouse over the panel to the right and clicking on the appropriate rating. If you don’t know your credit rating, click the button to calculate it for free. This will match up your rating with lender appetite to give you the best chance of success with your application.
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