What is credit score
Credit report is a result of a background check performed in order to asses an individuals financial responsibility. It’s based on many factors and the exact formula of calculation is not disclosed to avoid people trying to cheat the system. It has become very commonplace recently, it’s fairly safe to assume that you may have even been subjected to a credit check without knowing it ( even though it’s theoretically not legal to do without your consent ). You’re having a credit check run whenever applying for a contract phone, renting a new flat of even signing up for electricity supply.

To be honest, however, it’s hard to blame lenders for taking precautions. If you were to lend money to a stranger you’d definitely insist on learning that persons financial background. This way you’d get an idea of how likely are you to get the money back. Read more…