Credit Score Basics > What it means if your credit score band is "Very Good"

What it means if your credit score band is "Very Good"

Wollit Team3 minute read · Updated 3rd July 2024

In the UK, a “Very Good" credit score is the second highest one you can get on the Equifax scale. Experian and TransUnion do not have this band, however. Here’s what it means.

What does a “Very Good” credit score mean?

A "Very Good" credit score in the UK indicates that you are a low-risk borrower from the perspective of lenders. This means you are likely to be approved for credit products like loans, credit cards, and mortgages, and may even qualify for better interest rates and terms compared to those with lower credit scores.

Specifically, a "Very Good" Equifax credit score in the UK falls within the range of 671 to 810. This is the second-highest credit score band on the Equifax range, just below "Excellent" which is from 811 to 1000.

Experian and TransUnion do not have this band, as they jump from “Excellent” straight to “Good”. Equifax essentially gives you a bit more context into how good your credit score actually is.

Having a "Very Good" credit score suggests you have a strong credit history, which is built up over time by consistently making on-time payments, keeping credit card balances low, and avoiding too many hard credit checks. This shows to lenders that you are a responsible borrower who is likely to repay debts as agreed.

How does a "Very Good" credit score compare to other Equifax bands?

To put a "Very Good" credit score into context, here's how the different credit score bands in the UK are defined by Equifax:

Poor: 0-438;
Fair: 439-530;
Good: 531-670;
Very Good: 671-810;
Excellent: 811-1,000.

So a "Very Good" credit score sits in the second-highest tier, indicating you have a strong credit profile. This is much better than a "Poor" or "Fair" score, which would make it much harder to get approved for credit.

Compared to the "Good" band (531-670), a "Very Good" score shows you are an even more attractive borrower to lenders. You may have an easier time getting approved and could potentially qualify for better interest rates or credit limits.

The only band higher than "Very Good" is "Excellent", which is the top tier. Borrowers in this range are seen as the lowest-risk and most reliable. However, a "Very Good" score is still considered very strong and will open up a wide range of credit opportunities.

What are the benefits of a very good credit score?

Having a "Very Good" credit score in the UK comes with several benefits, as you can guess:

Lenders will view you as a lower-risk borrower, making you more likely to be approved for loans, credit cards, mortgages, and other forms of credit.
Lenders may also give you lower interest rates compared to people with lower credit scores. This can save you a significant amount of money over the life of a loan, mortgage, or credit card.
Lenders may be willing to give you higher credit limits, which can improve your credit utilisation ratio and further boost your credit score.
It can also help you rent more easily, as landlords and letting agencies often check credit scores when evaluating rental applications. A "Very Good" score can make you a more attractive tenant.
Some insurance providers also use credit scores as a factor in determining rates, so a higher score could lead to lower premiums for car, home, or life insurance.

Overall, even if it’s not the very highest credit score band, a "Very Good" credit score in the UK still puts you in a strong financial position and opens up more opportunities when it comes to borrowing money, renting a home, or even getting better insurance rates. It's a credit score band to really strive for.

What are some of the drawbacks of having a “Very Good” credit score?

There aren’t many big drawbacks when it comes to having a good credit score. Still, there are some things to keep in mind:

Achieving a very good credit score could make most people complacent.
If you’re in the very good credit score range, you’re only a few points away from the very best deals. And this can matter quite a bit – a small jump of 0.5% in a mortgage rate for a fairly average £500,000 mortgage taken for 30 years can add up to almost £50,000 over the entire life of the mortgage. That’s a big amount to pay simply for not having the very best score.

This is why it’s so important to not stop working on your credit score once you have achieved a “Very Good” credit score band. Luckily, it’s getting easier to do so, as now there are specialised credit-building apps to use for this purpose.

One of these apps is Wollit. Wollit is available on both iOS and Android, and it reports your monthly subscription as loan repayment to the credit reference agencies, helping you maintain and even slowly continue to improve your credit history, which is the main factor that matters for your credit score. Eventually, and especially if you don’t miss any payments or have other adverse events, you should move into the “Excellent” credit score bands and unlock the very best deals that the UK finance industry has to offer.