Credit Agencies -Information on credit scoring

  Lenders use a system called credit scoring to determine whether they will accept a loan application.

  Generally speaking, an application for a secured loan is more likely to be successful than an unsecured loan application, especially if the applicant has had previous credit problems.

  Please note that ADM Online does not make the decision on whether your application is successful - this is done by the lending company.

  Should the lender not accept your loan application, ADM Online will not be told the reason why. We are only told whether not your application has been successful or not.

What is credit scoring?

  Credit scoring is not an exact science, different lenders have different systems. Generally, lenders will look for the following:

• Stability of residence : the longer you have been at the same address the better
• Marital Status : Lenders tend to look more favourably on married applicants
• Accommodation : Many lenders prefer to lend to homeowners. When assessing tenants, they may prefer tenants in unfurnished property
• Employment : again lenders look for stability of employment. If you are self employed, they may prefer to see evidence of accounts prepared by a qualified accountant
• Previous or existing credit arrangements : Lenders may like to see that you have kept up with repayments on previous loans or credit arrangements.
• Secured or Unsecured : A loan secured on your home is more likely to be accepted by the lender, especially for people with past credit problems

  Different lenders may take some or all of these questions into account when deciding whether to accept your loan application.