Shortcut to: A good credit score
How it works and how to improve it
Your credit score matters. From mortgages to credit cards to loans, it affects your ability to borrow money and the cost of that debt to you. The majority of conventional lenders (banks, basically) will check your credit score before they lend you so much as a pen.
If your score is particularly bad, utility providers might start demanding deposits, you may struggle to get rental applications approved, and you may not be able to get a mobile phone contract. In other words, a world of hassle that you can do without!
Small things can make a big difference. An unpaid contract that you thought you’d cancelled. A single missed payment for a credit card or utility. These can dent your credit score without you knowing and may be the reason why the bank doesn’t want to take your calls.
How to check your credit score
There are a range of credit scoring companies - also known as 'credit reference agencies'. The banks are going to be looking at the big names, so it’s worth going to one you recognise. The three main credit reference agencies in the UK are Experian, Equifax and TransUnion.
Your score may be slightly different across the various agencies because each of them draws information from different providers. However, they probably won’t draw very different conclusions about your general credit-worthiness.
Most of them are pretty user-friendly. They will show you an overall score, the balance of your various debts – mortgages, car loans, credit cards and so on – plus your current accounts. They’ll show you areas where you can improve and anything that’s potentially dragging your score down.
Most credit ratings are free to use, at least at the basic level. You can pay extra for certain added services to improve your score - sometimes called a 'credit boost' - but you shouldn't need to pay for a simple credit check from most of the larger credit reference agencies.
What is a good credit score?
So how do you know if your credit score is 'good' or 'bad'? Confusingly, each of the different credit reference agencies has a different scoring system, which means your score from one can look very different from the next!
Each agency typically gives you a description of your credit score - e.g. 'good' or 'excellent' - as well as the number, which can be a helpful gauge of how well you're doing. Below is a summary of the scoring system at all of the three main credit reference agencies.
Equifax
Equifax uses a 5-tier system ranging from 'poor' to 'excellent', with a highest possible score of 1000. A 'good' credit score with Equifax is at least 531.
Experian
Experian also uses a 5-tier system, but this one ranges from 'very poor' to 'excellent', with a highest possible score of 999. A 'good' credit score with Experian needs to be at least 881.
Transunion
Finally, TransUnion also uses a 5-tier system that ranges from 'very poor' to 'excellent', but has a highest possible score of 710. A 'good' credit score with TransUnion needs to be at least 604.
Credit score by provider
In the table below, you can see the credit score systems across all three major providers. Bear in mind that Equifax has a slightly different system so they're not directly comparable.
Rating | Equifax | Experian | Transunion |
Very Poor | - | 0-560 | 0-550 |
Poor | 0-438 | 561-720 | 551-565 |
Fair | 439-530 | 721-880 | 566-603 |
Good | 531-670 | 881-960 | 604-627 |
Very Good | 671 - 810 | - | - |
Excellent | 811-1000 | 961-999 | 628-710 |
Source: finder.com, correct as at 13/06/23
So according to the above, 0 is technically the lowest score. Though this is generally unusual, it's not impossible. Data from Experian in 2022 revealed that there are actually over 5 million Brits who are 'credit invisible' - meaning they have little or no credit history at all - which equates to almost 10% of the UK population.
However, most people are well above this. In fact, according to a report in October 2021, the UK's average Experian credit score was 797 - but this differs widely in different parts of the country. You can see the average credit score in different regions of the UK in this interactive map from Experian.
Bear in mind that it's quite normal for your score to fluctuate or fall slightly at numerous points in your life. This isn't necessarily a reason to panic, especially if it's only gone down a little bit. And even if your credit score is low or non-existent, there are lots of ways you can improve it or give it a boost if you're concerned.
How to improve your credit score
It's not the end of the world if your credit score is lower than you were expecting. Thankfully, there are lots of ways you can bring it back up again and prove to lenders that you're worthy of credit.
For example, if you’ve got an obvious howler on your credit score, tackle it! If you’ve missed a payment, such as utility bill, contact the company involved and pay it. If it’s disputed, fight to have it removed from your credit file while it’s being investigated. The key is to be proactive.
A few simple things you can do to improve your credit score include making sure you're on the electoral register, adding evidence of consistent rental payments, and avoiding making multiple applications for credit. You can also raise your credit score by using specific ‘credit building’ credit cards, which are aimed at people trying to build up good credit or who need to replenish some of it if their score is too low.
Some credit reference agencies offer services which allow you to 'boost' your score by providing evidence of regular payments - such as council tax or Netflix subscription bills - to prove you're a dependable debtor.
How long does it take to improve your credit score?
Credit scores tend to recalibrate monthly, but it won’t improve immediately. In some cases, it can take years to improve your score. But don't let this put you off - after all, your credit score can make all the difference when buying a house or if you need to take out an emergency loan.
If you’re taking out important credit, such as a mortgage, you should check out your credit score a good while in advance so you can start the improvement process with plenty of time.
There will be certain bits and pieces that linger – County Court judgements, for example. However, these are removed from your credit report after a certain amount of time (though this can be as long as six years in the case of non-payment of bills!). Make sure that these are cleaned off your record when the time comes.
