Monthly Archives: May 2013

PaydayUK explains credit ratings and scores

Credit Scoring definition

For many people, terminology like credit ratings, credit history and credit scoring can be quite confusing.

So here are our quick definitions;

A person’s credit rating is an evaluation of their ability to fulfill financial commitments. This evaluation is based on their past financial activity (called their credit history) such as credit card payments, loan repayments or mortgage repayments. A credit rating is usually derived by considering ranges of credit scores, so, for example, a credit rating of ‘good’ would be aligned alongside credit scores at the higher end of the score spectrum.

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