 When applying for a home loan mortgage, you will have your credit rating checked.
Your credit rating is how the lender find out how reliable you have been in the past with other financial products. They want to sure you are worth the risk of lending you the money before offering you a loan.
They will study your financial incoming and outgoings, they will also take into account why you are applying for the mortgage. They will also carry out a detailed credit check.
There are two major credit reference agencies, Experian or Equifax, that the mortgage lender will use.
These agencies hold information about everyone and have a formula for rating how good or bad a credit risk you are.
They'll will find out if you have had any problems in the past with a financial provider.
They'll grade you by current address (beware if anyone in your house has ever had any bad credit that will count against you too).
Despite being thorough, the process is fairly quick.
There is little chance of you being offered a mortgage if you have any history of poor credit. This is a major problem for people who are wrongly labelled as having bad credit.
If you already know you have a bad credot rating it is important not to apply to lenders who are going to automatically reject you This is because every time you are turned down - regardless of the reason - this will show on your credit rating and further damage your chances of getting a mortgage.
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Credit Check 
