A credit rating is number that is often referred to as a credit score. When reviewing a credit report many credit providers use this number as a way of determining whether they will approve an application. A credit rating is affected by a number of factors including but not limited to, the profile of the individual, the number of credit enquirys and if the credit report contains any negative listings such as defaults or judgements.
A credit score can be looked at as a way of determining risk. To a credit provider a low credit score would represent a high risk while a high score would be seen as a low risk transaction.
The actual formula used to determine a credit score is a tightly kept secret by the credit reporting agencies however the lower the score the worse a credit report is considered to be by a potential credit provider.
Credit scores start at 100 and end at 1200. 100 being a very poor credit score. While it is impossible to predict the outcome of an individual credit application as a rule of thumb any credit score less than 500 may be considered an issue and could result in an application for credit to be declined.
Credit repair companies such as Clean Credit specialise in helping people have negative credit items such as defaults and judgements removed from their credit files, restoring their credit rating and allowing them to secure credit once again.