What is credit scoring?

What is credit scoring?

Like other responsible lenders, to help us make decisions on when to give you credit, we use a system called credit scoring when we assess your application. Credit scoring helps us predict how likely we are to get back the money we lend. It's a consistent, accurate and fair way of assessing risk. We use credit scoring for applications for loans, credit cards, overdrafts, mortgages and some current accounts.

To work out your credit score, we look at:

  • Information you give us when you apply
  • Information from credit reference agencies that show us whether you've kept up to date with payments on any credit accounts (that could be mortgages, loans, credit cards or overdrafts), or if you've had any court action such as judgements or bankruptcy
  • Your history with us

The credit scoring system allocates points for each piece of relevant information and these are added up to produce a score. Provided your score reaches a certain level and meets our other policy requirements we will generally agree to your request. In order to protect the integrity of our systems, the way we calculate your credit score must always remain confidential.