A good credit score
A “good” credit score depends on the scoring system used by your particular lender – there’s no one credit score or magic number – different lenders score differently.
However, if you have a good credit score from one of the main credit reporting agencies such as Experian, you are likely to have a good credit score with your lender.
- The Experian Credit Score runs from 0-999 and is an indication of how lenders may view you.
- It is based on the information in your Experian Credit Report
- The higher your score, the greater the chance you have of getting the best credit deals
To get your Experian Credit Score FREE forever, sign up to CreditMatcher, a free independent service that helps you compare credit deals you’re more likely to get, based on your credit information. We are a credit broker not a lender, working with selected lenders.†*
How a good credit score is worked out
When you make an application for a loan, credit card, mortgage or other type of credit, lenders work out a credit score for you, based on factors such as:
- information on your credit report
- information you’ve given on your application form
- information they may already hold on you
- public record information (such as CCJs)
- and their own lending policy, which may differ from other lenders.
Usually, a higher score means you’re seen as lower risk – the more points you score, the more chance you have of being accepted for credit, and at better rates.
They’ll look at your credit history, which is based on your credit report and will show things like if you have a mortgage, how much you owe on credit cards and if you’ve missed payments in the past.
They do this so they can decide for themselves if they think you’ll be a responsible borrower, and likely to repay what you owe them.
The Experian Credit Score is a guide to help you understand your credit report, and how the way you’ve managed the credit you’ve had in the past might affect applications you’re making now.
What affects your Credit Score?
Some of the factors that can power up your Experian Credit Score:
- The lower your overall balances (not including mortgage), the better – so try to stay within credit limits and keep balances low.
- Too many new applications for credit can make lenders think you need to live off credit – each application is recorded on your credit report for 12 months, so the fewer you’ve made in the last 6 months, the better.
- Missed or late payments can have a big impact, but paying on time can really help your score – so try to make sure all bills are paid on time.
- Register to vote at your current address – lenders use the electoral roll to help confirm who you are and where you live.
- Review your credit report regularly – make sure it’s up to date and in good shape for when you’re ready to apply for credit.
Your Experian Credit Score is not set in stone – it’s a living, breathing thing and it changes along with your own financial behaviour. Getting your credit score up could open up the potential chance to get better loans – and at better rates.
Essentially, if you manage your finances responsibly, and you are not reliant on credit, and you are easily identifiable (e.g. you are on the electoral roll and have a thorough address and credit history), this is likely to stand you in good stead for getting the credit that you want.
What doesn’t affect your credit score
Credit scoring never considers any of the following:
- your religion, race, sex, or marital status
- your age or your marital status
- your salary, employer, or occupation (though your lender may take this into account)
- where you live, who lived there before you, or who lives with you now (unless you are financially associated – see here for more about that)
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†Experian acts as a credit broker and not a lender in the provision of its credit cards and personal, car finance and guarantor loans matching services, meaning it will show you products offered by lenders and other brokers.
Experian acts independently and although CreditMatcher shows products for a range of lenders and other brokers it does not cover the whole of the market, meaning other products may be available to you. CreditMatcher services are provided free however we will receive commission payments from lenders or brokers we introduce you to.
CreditMatcher is provided by Experian Ltd (Registered number 653331). Experian Ltd is authorised and regulated by the Financial Conduct Authority (firm reference number 009743). Experian Ltd is registered in England and Wales with registered office at The Sir John Peace Building, Experian Way, NG2 Business Park, Nottingham, NG80 1ZZ.”
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