Ever since the system of credit scoring and credit reporting came into play, consumers can start to understand what their level of personal debt is, how much credit they have accessed already and how much credit they could potentially access.
All this is reflected in a 3-digit numerical value known as a credit score that is calculated using mathematical algorithms based on financial data taken from the consumers' credit history.
MyCreditMonitor is a platform for consumers in the UK to gain access to their credit scores and credit reports. It is also a place where we offer tips and guidance through our blog.
Ranging between 0 and 999, credit scores are calculated by lenders to see how creditworthy, i.e. how likely is the applicant going to be able to make the loan repayments.
Generally, the higher the credit score is, the more creditworthy an applicant could be deemed to be in the eyes of lenders, as this can indicate that the applicant is less of a financial risk.
A high credit score may help consumers in the UK get access to various lines of credit, e.g. credit cards, personal loans and mortgages.
Having a high credit score and knowing what to do to improve a low credit score does matter, as it gives consumers a better chance in being successful with any credit applications that they may make in the future.
To help UK consumers enhance their understanding on the way credit scoring and credit reporting works, MyCreditMonitor has produced an animated video and launched it on its homepage.
Nathan Sloan, Digital Optimisation Manager at MyCreditMonitor, says: "Explaining complex concepts and processes through creative, colourful and concise ways is something that a good video does.
"So, we thought it would be a great idea to produce a video that not only explains how credit scores and credit reports work in the UK, but also provides suggestions on how our audience might be able to improve their credit scores.
"We have titled the video as MyCreditMonitor's Guide to Demystifying Credit Scores and positioned it on our homepage so that our audience can easily access it."
To watch the video, please visit: http://www.MyCreditMonitor.co.uk