How do people decide if I am granted credit?
Your bank manager or the person you are applying to will probably refer the decision to risk assessors in their organisation. This department may search your credit file with a credit reference agency. They will use this information in conjunction with information on their own records and what you have told them about yourself. They then apply their own scoring methods to decide if you match their lending criteria.
What is my credit score?
A credit score is a method of assessing your relative credit risk. Each company can apply its own methods and can consider different characteristics. The purpose of a credit score is to make sure that the evaluation process is fair to everyone and not prejudiced by subjective assessments. When the company runs a credit check on you the report they receive may include a risk guideline or score, but it will never-the-less be the company that usually arrives at its own decision and the credit agency score may be just one factor in their appraisal.