Credit is something almost everyone of use will take advantage of at some point in our lives. Whether it be in the form of a credit card, a loan or mortgage, credit is becoming increasingly more difficult to avoid. There are however a great many people that have never had credit and for some this is out of choice and for others it? simply a case of never having been old enough to get it!



We may well all know one or two people that have never had a credit card out of choice but even many of them will probably have signed a credit agreement for something at some point in their lives. The bulk of the population that has never had any form of credit whatsoever are those below the age of 18.

Despite their being a large number of people that have never had credit, everyone can still be ?credit scored?. Principally a credit score is an assessment of an individual's eligibility for credit. People are assessed on a number of factors that determine if they will be able to adhere to the terms of an agreement set by the company providing the credit.

One of the key factors that can affect an individuals ?credit worthiness? is them being present on the electoral role. This indicates that a person has legally declared who they are and where they live. Essentially this means you are who you say you are.

Also a person's previous ability to manage a bank or building society account with regular incoming and outgoing payments or direct debits can be especially helpful when requesting credit from the same bank at which the well managed account is held.

Another important factor can be someone's previous ability to manage credit responsibly. If a person has repaid credit in the past according to the repayment terms set by a previous credit agreement this will be visible on their credit report. This however doesn't help people trying to apply for credit for the first time and can in some cases present a problem.

Someone who has never had credit before may be required to accept a higher rate of interest until such time as they can be proven to manage the credit responsibly. This is not so much as a penalty for never having had credit before but more of a crash course into the world of responsible borrowing. Making regular repayments on time is a very strong indication to a company considering providing credit to a consumer that they are more likely to honour the terms of an agreement than someone who has failed to meet the terms of a previous agreement.

People considering applying for credit can obtain a copy of their current credit report and determine for themselves if they have a good ?credit score?. People that have been refused credit for whatever reason may wish to review a copy of their credit report to find out why it is they have been turned down.

The two most widely used credit referencing agencies in the UK are CreditExpert (Experian) (www.creditexpert.co.uk) and Equifax (www.equifax.co.uk). People wishing to obtain a copy of their credit report can apply directly to either of these organisations and request their individual report. Both of these agencies provide an online service whereby consumers can enter a few basic details and view their report instantly. Both also offer tips and guides to help you understand the information within your report.

Credit reports can provide details of any credit agreements you are currently contracted to such as credit cards, loans, mortgages or car finance. Details of your payment history are also available that can show you when or if you have missed any payments. The information in a credit report can also be used to highlight anything out of the ordinary and help resolve disputes.