Does your postcode effect your Credit Score?

Your credit score is derived from information from many sources, including geo-demographic databases, census data, questionnaires, the electoral role and government statistics.

UK Government Neighbourhood Statistics

In general, people tend to live near like-minded people. There is a good correlation between where you live and your credit rating. Credit reference agencies give each postcode its own score, ranging from 500 to 1,000 based on the risk of bad debts. Neighbours who borrow recklessly can damage your chances of getting a loan or credit card. The data comes from sources such as credit files, county court judgments and bankruptcy orders.

How your area is described, what type of people live there, and how affluent they are

Your postcode can be more relevant if you are applying for quick credit, such as for a mobile phone contract, a mail order account or a storecard, where automated credit scoring systems are used.

Is your ability to raise credit partly a postcode lottery?