An Introduction to Borrowing Power
Borrowing Power is unique to TotallyMoney. It’s one number to show how likely you are to be accepted when you apply for credit — and you won’t find it anywhere else. Think of it as your credit health meter. The higher your Borrowing Power, the better the credit card and loan offers you’re likely to get. More power to you if you know what Borrowing Power is, but if you don’t, watch this nifty video or read on to learn more.
How do we calculate your Borrowing Power? First, we look at the information in your credit file. Then, we check what different lenders are looking for when they decide whether to accept you for credit. We measure this information against a range of relevant products to estimate how likely you are to get them. When do we calculate your Borrowing Power? Your Borrowing Power is calculated in real time, and gets updated every time you log in — for the most accurate view of your financial situation. How is your Borrowing Power different from your credit score? Borrowing Power is dependent on market activity, as well as your own financial behaviour. It gives you an up-to-date idea of the credit products available to you. Your credit score, on the other hand, is a basic number that gives you a rough idea of your credit file's health. Credit reference agencies create these scores, but they’re not based on real-world lending decisions. Borrowing Power gives you a better idea of the credit products that could be available to you. How do you find out your Borrowing Power? Sign up for your Free Credit Report to find out your Borrowing Power and credit score. It doesn’t harm your credit rating in any way and only takes a couple of minutes. It’s the first step towards taking control of your finances. The UK’s Borrowing Power Use our interactive map to see the different Borrowing Powers across the UK. What’s the average Borrowing Power for your postcode area?