What is a credit score? How lenders decide whether to lend to you
By SendPay Business · · 2 min read
A credit score is a number that sums up how you have handled borrowing in the past. Lenders use it, along with your credit report, to decide whether to lend to you and at what rate.
Where the score comes from
Credit reference agencies collect information from lenders about your loans, cards and bills. The three main agencies in both the UK and the US are Experian, Equifax and TransUnion. Each works out its own score, so your numbers can differ between them.
What usually helps and hurts
- Paying bills and loans on time helps.
- Using only part of your available credit helps.
- Missed or late payments hurt.
- Applying for lots of credit in a short time can hurt.
When a credit check is not needed
Credit checks are for lending. Opening a basic account that only spends money you have loaded, such as an e-money account, usually needs identity checks (KYC) but not a credit check.
Where SendPay fits
SendPay does not offer credit or lending. SendPay platforms are powered by licensed partners, and SendPay tells you in writing which licences apply to your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.