Your credit range score is determined by the lender in order to evaluate your application for credit. The lender will want to weigh up the risk of any non payment and so mitigate his losses. The score is generated from a persons credit history file and so the creditworthiness of this person is assessed. If your score is acceptable, and within the range stated, then you will be considered for the credit. A score lower than the limits set on an application form may be still looked at, but does not have the same chance of success.
This selected credit scoring is not only used by banks and finance companies, it is also used by many service providers, for example mobile phone operators, landlords, and certain government departments. It is a widely accepted method for assessing a persons ability to repay a debt over a set period of time.
Calculating a credit score range is a statistical means of calculating a predicted outcome from which a choice can be made whether to award or refuse credit. Different lenders have differing criteria for acceptance, but your personal credit score range can make all the difference. It is not possible to predict your score in advance as the methods used to calculate it are complex. If you are refused credit the lender is not obliged to tell you why or inform you what your score was.
You can order your national credit score before applying for any loans or credit. It will give you a good idea whether your score would be within the range expected. If it appears to be lower than expected then you will have the chance to see the information, you can then ask for any details to be corrected if it is found to be inaccurate.
Having a good credit history record speaks volumes and gives the lender more confidence in you they see you as less of a liability.
The credit score you gain can vary depending on the time you request it. It is calculated using all your personal data and your previous history record of obtaining credit. One lender may consider you while others may decline your application. Just remember that each time you apply for credit it is recorded and added to your file. Repeated applications for credit can be damaging to your score so it is best to seek out the most suitable offers.