Credit Score Basics > What is a good credit score?

What is a good credit score?

A good credit score is one that gives you a high chance of approval when you apply for a new credit card, loan, or mortgage.

This answer might sound vague because there is no set number that makes a credit score "good". If you want to see if your credit score is good, you can do it in three ways.

First, you can compare it with each credit reference agency's threshold for a good score:

• For Experian, a good credit score is between 881-960.
• For Equifax, a good credit score is between 531 and 670.
• For TransUnion, a good credit score is between 604 and 627.
• While comparing, remember that technically, you don't have one credit score—but three, one with each credit reference agency. They calculate it slightly differently and use slightly different data.

Second, you can compare it with the average credit score in the UK for your age and location.

• One way to do this is by checking Experian's Map of Average Credit Scores in the UK.
• For example, the average credit score for a 30-year-old in London is 893.
• So, suppose you're also a 30-year-old living in London with an Experian credit score of 885. Even if this is technically "good" by Experian's definition, it might still signal to lenders that you're not as financially reliable as your peers.
• Equifax also publishes similar data – according to Finder.com, the average Equifax credit score in the UK is 644 (out of 1,000).

Finally, you can and should also use an eligibility checker to see if your credit score is "good enough" for the products you have in mind. This method is, in many ways, best because:

• Different lenders have different credit score criteria for different products.
• Different lenders work with different credit reference agencies. So your "good" Experian score might not matter if you have a "poor" one on TransUnion and the credit card you apply for only checks TransUnion.
• Your loan chance of approval is influenced by multiple factors, not only your credit score.

Some of the most popular loan eligibility checkers in the UK are:

• Uswitch for credit cards,
• MoneySavingExpert for loans,
• and MoneySuperMarket for mortgages.

These aren't the only ones. In fact, the loan, mortgage, or credit card you're thinking of applying for might also have an eligibility checker on its website. Even credit reference agencies—like Experian, for example—have one.

How can I get a good credit score?

There are many things you can do and tools you can use to improve your credit score to at least "Good," if not "Excellent."

Here are some tips to get a good credit score:

• Register to vote at your current address. This helps banks, lenders, and credit reference agencies verify your identity.
• Pay your bills on time and in full each month. This shows lenders that you're a responsible borrower.
• Keep your credit utilisation low. This is how much you actually use of your total credit limit. For example, if you have a credit card limit of £1000 and used £500 of it, your credit utilisation is 50%. A lower percentage tells lenders that you're not struggling financially and you're not "living on credit". According to Experian, you should aim to keep your total credit utilisation under 25%.
• Sign up for a credit-building tool. These tools help you build up your credit history. If your credit history is "thin," credit reference agencies like Experian can have a hard time scoring you.

Some examples of credit-building tools:

• Credit-building credit cards: great but often come with low credit limits and very high interest rates and fees.
• Experian Boost: it can instantly boost your credit score by making your regular payments to your savings account, council tax, and even streaming services like Netflix count towards your Experian credit score.
• Wollit: it reports your monthly subscription as a loan repayment to all three credit reference agencies. This ensures that your credit score improves across the board (unlike Experian Boost) and that you don't have to pay excessive fees (unlike credit-building credit cards).

How do I maintain my good credit score?

Once your credit score is at least in the "Good" range, here's how you can keep it there:

• Make fewer credit applications. Each application is recorded on your credit report as a "hard search, " which may hurt your credit score – even if you get approved. Use an eligibility checker first.
• Close old, unused accounts. If you have too much credit available, lenders may think you won't be able to handle more – even if you don't use the credit currently available to you.
• Only borrow what you know you can afford. Any "adverse event", which is what lenders call missed payments, defaults, CCJs, IVAs, and bankruptcies, will have a big negative impact on your credit score. They will also stay on your credit report for up to six years.
• Check your credit report regularly and make sure there are no errors or, worse, signs of fraud on it. If you see anything suspicious, get in touch with your lenders and credit reference agencies

• Credit Score Factors
• Credit Reference Agencies
• Credit Building Tips