How a credit ratings for credit or debit card works??

Public Comments

1. All credit card companies (and some others like mortgages, mobile phone bills, etc) track whether you pay your bills each month on time. This information is then shared centrally, using a company like Experian. If you pay your bills on time then this is recorded, and over time you will build up a profile that shows you reliably pay your bills. This is called a good credit rating. When you apply for a new credit card, or loan, or whatever then the company you apply to goes to the central register at Experian and looks up your record. If you have a good credit rating they will offer you the new loan, whereas if you haven't been paying off your bills (perhaps because you are in too much debt) they will either turn you down or demand you pay a higher interest rate because you are riskier. You can see your credit rating if you would like by applying to Experian. I just checked and on website below you can do this for £2