97% of British don't know how their credit score is calculated!

Jan. 1, 2011 - PRLog -- There are many people who are not aware that they have a bad credit score. If you are looking to repair your credit you have to know how credit score is calculated. Many of the British know that there is a problem with their credit rating, but don't know why. It is actually 97% of the British that have no idea how a credit score adds up, however it does influence their financial future.

A good credit score is essential in life, to get a loan, credit card, even your landlord or insurance provider might check your credit score before you get approved. Therefore you need to make sure everything is OK around your credit and you can improve your credit score if it is not acceptable. It is too late when you get rejected for a job, loan or credit card.

Repayments on time
Your repayments get reported to the credit reference agencies, and every repayment you make on time builds up your credit score. However every late or missed payment will go down as a negative point and affect your credit score.

Utility bills
Energy companies, monthly subscription providers and even mobile phone contract companies do report your repayments to the credit reference agencies. So you have to make sure that you pay them on time as well if you want a good credit score.

Amount of credit
How much credit do you actually have? How much of it is secured or unsecured? Secured loans are more advantageous for your credit sore than unsecured loans and credit cards, so be careful with applications, as the way how credit score is calculated is taking into consideration the amount of outstanding debt.

Permanent address
How long have you been living at your current address? And how long have you been paying your bills from that address? Can the Credit Reference Agencies trace you? Are you registered on the Electoral Register?

Number of credit searches
Be careful because every single credit search that is applied on your name for credit, even if you did not go ahead with the application will reduce your credit score. The way how your credit score is calculated is every single repayment increases the score and every application reduces your rating.

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I have seen many people struggle with bad credit in the UK recently. We have to find a solution for eliminating debt and starting a new, debt-free life. Find out how your credit score is really calculated! http://www.solvemybadcredit.co.uk/creditreportsexplained.php