Credit Score

Often a rejection for a mobile phone contract is the first indication to someone that their credit score and mobile phones are linked. What most people don't realise is that a mobile phone contract is infact a credit agreement, and as such is applied for and considered in the same way a credit card application would be - with the same implications for your credit score.

In order to know how you can improve your credit score it is important to understand what makes up the score you see on your credit report. Although each credit report company uses its own proprietary technique to gauge the level of risk each individual presents, there are a number of factors that are thought to be highly important in considering whether an individual has good or bad credit.

Calculating a credit score - Key Factors

Your credit score is a number that rates your past performance as a borrower - whether as a customer of a mobile phone company, a customer of a bank with an overdraft or credit card facility, a borrower of a personal loan or mortgage, or even as the named bill payer in your house.

A credit score is a number calculated by credit rating agencies on behalf of banks that sums up a number of variables such as how often you have asked for credit, whether you meet your monthly repayments, whether you have recently been denied for credit etc as well as factors such as whether your address and personal information can be confirmed (for instance through checking the electoral roll) into one single score which determines whether you are a good or bad credit risk.