Borrowing and Credit Scoring

What you need to know

Understanding our credit decisions

Like other responsible lenders, to help us make decisions on when to give you credit, we use a system called credit scoring when we assess your application. This is designed to give you straightforward answers and clear explanations.

Why do we use credit scoring?

Credit scoring is a method we, and many other lenders, use to predict how likely we are to get back the money we lend. It’s a consistent, accurate and fair way of assessing risk.

To work out your credit score, we look at:

  • information you give us when you apply
  • credit reference information e.g. whether you have kept your payments on your credit accounts up to date or whether you have been or are in arrears
  • your history with us

How does credit scoring work?

We give you points for each bit of relevant information, then add them up to get to your credit score. 

Once you’ve scored a certain number of points (and met our other policy requirements), we’ll usually approve your application. The score you need to get your application approved may vary. To help make sure our systems remain secure and fair, we keep the finer details of how we work out your score confidential. Our call centre staff will not be able to provide the full details of your score either. But it is important that you complete your application in full, because if you leave something out it may affect our assessment.

How information is used and accessing your credit file

Credit Reference Agencies

The Central Credit Register (CCR) is a mandatory register of personal and credit information operated by the Central Bank of Ireland under the Credit Report Act 2013. Records held on CCR can be used to assist lenders in assessing credit applications. .

What information is provided from a Credit Reference Agency?

Credit Reference Agencies keep records about people’s credit history to help financial organisations assess credit applications. These records may include:

  • registered court judgments
  • register of electors
  • bankruptcies and insolvencies
  • credit agreements in arrears
  • previous credit searches by other organisations

How is a Credit Score calculated?

The credit scoring system allocates points for each piece of relevant information and these are added up to produce a score. Provided your score reaches a certain level, your application for credit will generally be agreed. In order to protect the integrity of the scoring systems, the way your credit score is calculated must always remain confidential.

Can you get your own credit report?

If you would like a copy of your information held by the Central Credit Register, credit reference and fraud prevention agencies we use, or if you want further details of how your information will be used by the Central Credit Register and credit reference agencies please visit their websites or contact them using the details below. You can request your own credit report at any time from the Central Credit Register. They may charge a fee.

The Central Credit Register

Web Address: http://www.centralcreditregister.ie

Email: consumerinfo@centralcreditregister.ie

Phone: +353 (0)1 224 5500

As  CCR have a responsibility under Data Protection Legislation to keep your records secure, they cannot discuss any aspect of your credit report with you over the phone until after you have received your credit report and can quote the unique reference number from the report.

What if the information the credit reference agency has is wrong?

If you feel the details in your credit report are inaccurate you may request to have the information corrected. You must start by contacting the Lender and request that they make the necessary changes to your record. If the information is accurate, the Lender is not obliged to change it. CCR can only make changes to your credit record upon receiving an agreement from the Lender.

Why might your application for credit be turned down?

If your application is refused, you will be given a brief explanation of why you were refused. You may also have the right of access to your personal records held on our files. 

In general your application can be declined for two reasons:

  1. A scoring decision, where your overall score was not sufficient to reach our acceptance pass mark
  2. Specific lending policies e.g. as a responsible lender it is not our policy to offer credit to applicants who might find it difficult to meet the repayments

A few simple ways to try to improve your score

Make all your regular payments on time

Always try to make at least the minimum payments on any credit products you have, on time. Missing or making late payments can often be registered on your credit report and this may harm your chances of getting credit in the future.

An easy way to help you avoid late payments is to set up a Direct Debit. If you’re in difficulties, you should speak to your lender who will be able to help you.

Close any accounts you no longer use

Having a large amount of credit that you do not use can affect your credit score. For example, if you have a credit card with a limit of €5,000 but you never use the card. Keeping accounts open that you don’t use can also make you more vulnerable to fraud. Also if you have old accounts, such as mobile phone or credit cards, they might be registered at a previous address that can affect your ID checks.

Manage your applications carefully

Making lots of credit searches in a short space of time can affect your score, so it may help to space out any credit applications, and those for things like car insurance and mobile phones. Moving house can also disrupt your score, so try to make important applications before you move. Finally, check if the product you’re interested in offers a quotation facility so you can check any terms before applying, and, without your credit search being recorded.