What is a credit score?
A credit score is an important index for obtaining a loan from a bank, financial company, or building society. If you want to get a credit card or take a loan for a car or real estate purchase - a financial company will evaluate your credit score. It is important to periodically monitor your credit rating because even a small forgotten and unpaid utility bill can significantly worsen it.
The value of the credit rating in the UK ranges from 300 to 1,000, while:
- credit score from 439 to 530 is poor and you can hardly expect to receive most loans
- 531-670 is good, you could apply for most credit cards but you should not count on the most favorable credit conditions
- 671-810 is very good, you can expect to receive the most types of credit cards and other types of loans
- 811-1,000 is excellent, you can count on receiving all types of loans (card, personal, vehicle, mortgage) on the most favorable terms
The ranges are conditional and may differ in various credit agencies.
Personal loan calculations for 1 year (example)
| Amount, $ | Rate, % | Accrued %, $ |
| 5,000 | 8.10% | 219 |
| 5,000 | 9.10% | 246 |
| 5,000 | 10.10% | 274 |
| 10,000 | 10.20% | 553 |
| 10,000 | 11.20% | 607 |
| 10,000 | 12.20% | 661 |
| 20,000 | 12.30% | 1,333 |
| 20,000 | 13.30% | 1,441 |
| 20,000 | 14.30% | 1,549 |
| 25,000 | 14.70% | 1,991 |
| 25,000 | 15.40% | 2,085 |
| 25,000 | 16.40% | 2,221 |
