What Impacts My Credit Score?

Posted By: Bluestone Credit Management

Posted: 04th April 2022

With interest rising from their historic lows, some people may be worrying about whether this will impact their credit score.

In itself, the answer will be no, but that does not mean that lenders might become more cautious in their lending activity, which in the case of ‘risk-based pricing’, where the interest rate lenders charge customers is linked to the risk assessment of an individual undertaken by lenders using this model.

Credit scores are calculated using the data compiled in your credit reports by credit bureaus such as Equifax, Experian and TransUnion based upon each person’s status, including residential status and employment, overlaid with their history of borrowing and repaying debts. The most crucial factors in improving credit score include;

  • Paying debts as agreed on time each month
  • Credit usage – utilising responsibly
  • Credit history – ‘long and clean’ represents a positive
  • Credit mix – managing multiple credit sources successfully

While in itself inflation should not affect an individual’s credit score, if the factors listed are impacted by rising costs, then sadly a person’s credit profile could be negatively affected.

IMPORTANT – if the rising cost of living is impacting your ability to pay your current loans, talk to your lender ahead of any issues, they may be able to help ‘lighten the load.’

Disclaimer

The content on this website may not be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of the publisher Bluestone Credit Management.

Blogs published on this site are presented for information and to stimulate debate and do not constitute advice or guidance. Any opinions expressed within the blog are those of the author and not necessarily held by Bluestone Credit Management. Due to the nature of the matters discussed on published blogs, the information contained within them and any linked pages are subject to change, without warning. While all information included within published blogs is believed to be correct at the time of publication, there may be omissions, errors or mistakes and cannot be guaranteed.

Bluestone Credit Management can accept no liability whatsoever for actions taken based on any information published on Blogs appearing on this site that may subsequently prove to be incorrect. Further, the business reserves the right to change how blogs are managed and as such published material can change at any time.

You are now being transferred to a different website

Just click the "continue to page" button and we'll take you through to the site.
However if you do not wish to proceed click the "Back to Bluestone Credit Management" button to return to our website.

Continue to page