In this brief guide, we are going to discuss the question “what is a good credit score in the UK?”
What is a good credit score in the UK?
A good credit score will depend on what credit bureau you’re referring to. There are various credit uraeus in the UK( Crediva, Equifax, Experian and Transunion) and they all use different scales to measure your credit score. Experian maximum credit score is 999 so a good credit score with Experian will be 750 and above. Equifax maximum credit score is 700 so a good credit score with Equifax will be 500 and above. Transunion’s maximum credit score is 710 so a good credit score with Transunion will be 450 and above.
When considering what is a good credit score in the UK you should also remember that each lender an institution will have their own lending criteria and so what may be considered a good credit score for one credit provider or institution may not be for another institution.
If you are looking to get a credit product and are concerned if you have a good credit score then the best thing to do in this instance is to use a credit eligibility checker.
Different credit products will also have different requirements. Example a secured car finance loan may have a different credit score requirement than a credit card.
When considering what is a good credit score in the UK You should also be aware that having a good credit score may not be the only thing to consider when looking at your eligibility for credit products this is because most credit providers will also look at your general affordability for the product. Example for a mortgage the mortgage lender may consider your income and expenditure as well as your personal circumstances when making a lending decision. E.g are you pregnant? Are you moving to a better-paid job?
The maximum credit scores with the major credit bureaus in the UK are as below:
Experian’s maximum score is 999
Equifax’s maximum score is 700
TransUnion’s maximum score is 710.
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What is a credit check?
A credit is a check carried out by a credit provider or a business in order to retrieve your credit report. A credit check can either be a soft credit check or a hard credit check. When a credit check is carried out the information on your credit file will be relayed back to the person who is carrying out your credit check.
Most credit checks are automated and not manual checks.
A hard credit check is when a full credit check is carried out for all the data on your credit profile. It will leave a footprint which everyone can see.
A soft credit check is a check on your credit file for basic information. Not everyone can see that you carried out this check.
A business or credit provider will carry out a credit check to determine if they want to offer you credit or do business with you.
How fast can you raise your credit score?
Your credit score usually takes a few months for it to rise as most credit-related activities are reported 30 days after they have occurred, which means they will only appear in your next credit report.
what is a good credit score in the UK when buying a house?
A good credit score when buying a house will depend on what credit bureaus you are referring to and what type of mortgage you are trying to get. There are mortgage lenders out there who will offer you a mortgage even with bad credit.
A bad credit mortgage broker may be able to help you with this.
How to get a good credit score
There are various ways you can get a good credit score, we will list some of the steps you can take to get a good credit score below.
Get a credit builder card; this will help you show good credit behaviour by repaying your credit card on time each month.
Get a credit builder loan; this will help you show good credit behaviour by repaying your loan on time each month.
Get a secured credit card; this will help you show good credit behaviour by repaying your credit card on time each month. Secured credit cards are very rare in the UK.
Get on the electoral roll; getting on the electoral roll at your current address proves that you have stability based on how long you have been on the electoral roll.
Make credit repayments on time; making your credit repayments on time will add a positive repayment history on your credit accounts and boost your credit score.
Keep your credit utilization below 30%; keeping your credit utilization below 30% will ensure your credit score boosts as it shows you are not dependant on credit to live.
Avoid defaulting on any credit repayments; avoiding any defaults on your credit accounts will show that you are able to keep in line with your credit agreements and are a good borrower.
Avoid Making too many credit card applications at the same time; making too many credit applications at the same time will make you look desperate and push your credit score down.
Avoid closing credit card accounts early; closing credit accounts too early will make it look like you are involved in fraudulent activity
Check your credit score for any errors; checking all your credit profile for errors is a good idea as credit profiles may contain errors which limit your credit score from growing. If an error is found report it to the credit bureau and they will place a “notice of correction” on the file whilst it is investigated. You can check all your credit reports by getting a statutory credit report from all of them or using a service like checkmyfile.
Do not incur any court judgements such as bankruptcy, county court judgements or a home repossession; these judgements stay on your credit file for 6 years and will push your credit score down as long as they are there.
How to check your credit score
If you are unsure of what your credit score is then you should check your credit score from the four credit bureaus in the UK: Experian, Crediva, Equifax and Transunion.
Request a statutory credit report
Some of these credit bureaus may charge you a fee to view your credit report so what you can alternatively do is request a statutory credit report which is a free credit report which each credit bureau must provide to you upon you requesting it.
Alternatively, you can also use credit score services such as Checkmyfile and clearscore to check your credit report.
In this brief guide, we answered the question “what is a good credit score in the UK?”. If you have any further questions or comments please let us know below.