Check my credit score > Is 986 a good Experian credit score?

Is 986 a good Experian credit score?

Wollit Team4 minutes read · Updated 12th November 2024

Your credit score of 986 falls into the best credit score band with Experian, UK’s largest credit reference agency. This band is called “Excellent”.

What does a credit score of 986 mean?

In the UK, credit scores are calculated by three main credit reference agencies: Experian, Equifax, and TransUnion. Each agency has its own way of calculating credit scores, which means that if you check your credit score with all of them, you’ll see not one, but three different credit scores.

These agencies also split their scores into different bands to help people understand how lenders see them.

An “Excellent” credit score is the very best rating you can get with Experian. Your credit score is in this band if it’s between 986. TransUnion and Equifax have a similar band called “Excellent” as well, although their credit score ranges are different. We’re only looking at the Experian score in this guide, since it’s the largest agency and one that most people are familiar with. You can easily get your Experian credit score for free, too.

In any case, if your score is in this range, it means that both credit reference agencies and lenders see you as very reliable and trustworthy. Time to make the most of it.

What does a credit score of 986 mean for my money?

Having a credit score of 986 which is officially labelled as “Excellent” can help you in many ways:

• Lenders are very likely to approve your loan or credit card applications.
• You’ll usually get the lowest interest rates on loans and credit cards. This can save you a lot of money over time – for example, as much as £90,000 for a £400,000 year mortgage taken over 30 years.
• You might also receive some of the highest possible credit limits. This means you’ll have more flexibility with your spending and you’ll also be able to keep your credit score safe from accidentally maxing out your credit limit.
• Landlords and letting agents may also be much more likely to rent to you, since they’ll know that you’ve been paying your bills on time.
• Even utility providers like electricity, gas, and internet may be more willing to waive security deposits and offer better deals.

However, while an excellent credit score of 986 is of course very positive, there are a few things to be aware of:

• Getting an excellent credit score can lead some people to become complacent about their credit management. It’s important to continue practising good habits to maintain that high score.
• Once you’ve reached the excellent credit score range, it can be difficult to improve your score even higher. It really becomes more of a matter of maintaining rather than improving credit score at this stage.
• Finally, criminals may be more motivated to target people with excellent credit scores. You’re basically a more valuable target for identity theft and fraud. This is why it’s important to not show off your financial situation on social media. You’d be surprised how easy it is for criminals to target you.

Still, the benefits of having an excellent credit score in the UK far outweigh the potential drawbacks, of course. By staying safe and continuing to manage your credit responsibly, you can enjoy the many advantages that come with being a low-risk, creditworthy borrower.

The most important thing, however, is maintaining your credit score. Dropping to the next credit score band, called “Good”, could mean as much as £50,000 in additional interest for a fairly average mortgage of £400,000. This is why it’s so important to not let labels like “Excellent” make you become complacent about your credit score.

How can I maintain my credit score in the Excellent band?

To keep your credit score safely in the Excellent band, you need to do a few things:

• Avoid having any missed or late payments. Use Direct Debit wherever possible. Take advantage of your credit score and arrange authorised overdrafts with your bank just to make sure no bill bounces.
• Register to vote at your current address and update your registration every time we move. We’ve seen many cases where this final piece was the last thing keeping people from having an Excellent score in the first place.
• And make sure you keep making payments on credit agreements so that your credit history has no gaps.

One of the tools you can use to achieve this is a specialised credit-building app like Wollit.

Wollit is an app that reports your monthly subscription as loan repayment to the credit reference agencies, helping you maintain your excellent credit history, which is the main factor that matters for your credit score.

It can even report your monthly rent payment to Experian, adding yet another line in your credit report that shows lenders you’re as responsible as your credit score says.