mobile-menu mobile-menu-arrow Menu

Credit rating - does it really matter?

Blog Filters

Recent Posts


This post may contain some affiliate links. Please read my full disclosure policy.

Credit rating – does it really matter?

I have had a few people asking me this question lately and in short ………..yes, they do.  Improving your credit rating can actually help to save you money in the future, so it is worth taking some time to fully understand them.

When you apply for credit, lenders make decisions about whether or not they want to lend to you based on three main things:

  • businessyour application, your income and your ability to pay back the money
  • previous history with the lender
  • your credit rating

In the UK there are 3 main credit reference agencies, Equifax,Experian and Callcredit who all hold information about you and your previous lending.  They simply build up a picture of all your lending behaviour and then use this to predict what your behaviour is likely to be in the future. 

Clearscore, in partnership with Equifax, have developed a free app which can be used on iPhone and android.  They also have a website that allows you to sign up free of charge.

Lenders use the information from these agencies to help them to predict what type of client you are likely to be and decide whether or not they want to lend to you. If they consider you to be a high risk client, there is a chance that they will reject your application.  However, they may decide to lend to you, but at a higher interest rate.  This will cost you more money than if you were a low risk client, who are often offered the lowest interest rates.


Absolutely!  It is important that you educate yourself about credit ratings and take the time a couple of times a year to check that the information on your credit file is correct. This infographic from Sainsbury’s bank has some simple and easy to understand information about credit ratings and what you can do to improve yours.


Applying and being rejected can impact badly on your credit rating, so it is great idea to do a soft search before actually applying for credit.  A soft search will help you to identify which lenders are most likely to accept your application and can help you to compare lending costs.

Before checking your credit rating you should read this useful information from Money Saving Expert, as it shows you how to check your credit report free of charge (or even make money from doing it!)

My Your Money Sorted challenges look into credit ratings in more depth and help you to understand the impact that they can have on your finances.

If you have any questions please just get please just get in touch.

Eileen x

I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping them to develop a better relationship with money. By gaining an understanding of how their personality affects the decisions they make, I can help them to implement changes which will allow them to feel calm, positive and confident that they are in control and making good financial decisions.  I can then support them to put into place simple strategies that will allow them to manage their finances effectively on a daily basis and create a stable, secure and exciting future for themselves.


Leave a Reply

Your email address will not be published. Required fields are marked *

Blog Filters

About Eileen Adamson

I am Eileen Adamson, a Your Money, Sorted coach, working online with UK based women, helping you to develop a better relationship with money. I can help you to understand your money mindset and implement changes which will allow you to feel calm, positive and confident as you become happier, healthier and wealthier.

Get In Touch


How to manage your money better These freebies will help you learn how to manage your money better, and be happier, healthier and wealthier.  Please click on the relevant button to download. I promise not to bombard you with rubbish emails, or share your details with anyone else.

SHOMOs 2018

Coaching Services

Finance for Freedom - Master your money in 28 days

How would you feel if you had enough money to allow you to live the life you want? Work out your path to financial freedom and feel happier, healthier and wealthier

Learn More

Teachers' Pensions Retirement Planning

Imagine being able to put more money towards your retirement, while still creating wonderful opportunities for you and your family, today and every day.

Learn More

"It's been just excellent and it's changed my life. I didn't feel I had a life - I was so bogged down I was drowning. You have totally changed my life."

Fran, Dumfries
© 2019 Your Money Sorted | Web design by Creatomatic