If you are applying for a credit card or loan, or if you ever have in the past, you will have heard of a credit score. For those of you who don’t already know, a credit score is a number that’s meant to show you how likely you are to be accepted for credit. But what on earth is a Credibble Score?
So the first thing you need to know is that your credit score doesn’t reflect how lenders view you. It can give some idea of where you stand, but most lenders don’t use your credit score to assess your application. What lenders want to know is if you are ‘creditworthy’, and they each have their own set of criteria to test this.
Keep reading to find out why the Credibble Credibble Score is the best way to measure your creditworthiness, and how it can improve your chances of credit approval.
What's Included?
What does creditworthiness mean?
Creditworthiness is just a way of saying how good of a potential borrower you are. If you are creditworthy, it means you are someone lenders see as being worth giving credit to.
Lenders want to know that you are in a stable position financially, and are able to handle credit responsibly. This is because it tells them that you can pay back whatever they choose to lend you. Makes sense, right?
Why does being creditworthy matter?
So how does this affect you? Well, it’s pretty straightforward. The more creditworthy you are, the higher the chance you’ll be accepted when you apply for credit. So whether you need a credit card, loan, or even a mortgage, getting creditworthy is key.
Being creditworthy is important because it can help you borrow money when you need it, and get the things in life you care about. This matters if you want your dream holiday, a new car, or a house later down the line.
Not only this, but the more creditworthy you are, the more access you’ll get to lower rates and APRs. In the long run, managing your financial position effectively can save you a lot of money, and help you make the most of what you earn.
Sometimes your savings won’t be enough – a project may be too expensive, or an emergency can pop up. Being able to borrow affordably can help you achieve your goals and manage your money better.
What is a Credibble Score?
With all this in mind, Credibble has developed a unique score called a Credibble Score. If lenders don’t focus on your credit score, why should you? Your Credibble Score is a number out of a thousand based upon an in-depth look at your credit file. It takes into account the factors that different lenders consider when deciding whether to give you credit.
We also provide a Lender Report, so you can understand exactly how the score is built and where you need to improve. You’ll be able to see the different factors that affect your creditworthiness, and check where you stand in relation to each factor.
This way, you can get the best sense possible of your financial position. You can then apply for products that best fit your needs and situation, and take action to boost areas where you may be falling short.
What are the factors that affect my Credibble Score?
There are six main factors that make up your Credibble Score. Firstly, we look at your ‘credit activity’. This relates to the credit accounts you currently use and any ‘hard searches’ that have been done on your credit file.
Next, there are your ‘affordability indicators’, which include things like how much of your income you spend on repayments and how close you are to the maximum limit on your credit cards.
We also check your ‘payment history’ to see how responsibly you have managed to pay back credit in the past. The score takes into account any ‘bad credit’ you may have on your credit file, such as bankruptcy or CCJs.
Finally, we also look at your ‘employment stability’ and ‘residential stability’. This is because lenders want to see that you are in a stable position in your living and working situation. The more stable you appear, the more they will see you as low-risk, meaning that you are more likely to be able to pay back any money they lend you.
How much does it cost to get my Credibble Score?
Getting your Credibble Score doesn’t cost a thing. We believe that everyone deserves access to the financial facts. To prove it, we let you check your Credibble Score and Lender Report absolutely free, no strings attached.
How can I improve my Credibble Score?
Once you have your Credibble Score, we will also show you ways to boost this score in your Credibble account. This way you can take practical steps forward to improve your financial situation and get to the strongest position possible.
People should have the power to make informed decisions about their personal finances. Borrowers have been left in the dark for too long about how lenders actually see them – it’s time for this to change.
Credibble offers two fabulous solutions
If you’re preparing to take a mortgage, never apply until you’ve tried our unique and FREE Credibble Home app. Our smart technology will tell you what you need to fix so you avoid rejection. The app predicts when you will be able to buy, for how much and tracks your month-by-month progress to mortgage success. We’ve even added your own mortgage broker, so you get the best deals available.
More focused on your credit rating? Well, get started for free with Credibble’s 24- Factor Credit Check to truly help you improve your creditworthiness and how lenders view you. (Remember: lenders don’t use your credit score! We’ll show you what lenders look for and how to get your credit report in the best shape possible).
Last updated by Robert Edwards, May 2022
