How is a credit score calculated?

The credit score you see is calculated using the information on your credit report, such as details about your credit applications and payments. Negative records like missed payments lower your score, while positive actions like paying off your credit card can increase it.

Not all records are weighted equally — a missed payment has less impact than bankruptcy, for example. Our guide explains who decides how your credit rating is calculated, what makes up your score and why it may change.

Want to see where you stand with lenders? Check your credit score with Experian. It’s free and updates every 30 days if you log in. Checking your score won’t harm it.

Who calculates your credit score?

Your score is calculated by the three credit reference agencies (CRAs) in the UK — Experian, Equifax and TransUnion. Each has their own way of doing this, which is why your score looks different on different sites. CRAs also collect and securely store the information that your score is based on.

Lenders may also calculate your credit score when you apply for credit. They typically use information from your credit report and application form, as well as their own records, if you’ve been a customer before. They won’t share your score with you — but they must tell you which CRA provided your credit data if you ask.

How is your credit score calculated?

Your score is based on your credit report, which includes information about how you handle credit. For example, your Experian Credit Score is based on the information in your Experian Credit Report, which includes things like:

• Current borrowing, such as loans and credit card balances
• Number of recent credit applications, whether successful or not
• Track record of making or missing payments
• Signs of financial difficulty, such as county court judgments or bankruptcy.

Each credit reference agency calculates your credit rating a little differently. This is because:

• They don’t always get the same level of information from the same lenders
• They each decide what affects your credit score and how much weight is given to each factor
• They have different ways of turning your information into a number, including different credit score scales.

What improves my credit score?

Actions that can improve your score include:

• Consistently making payments on time and in full
• Paying down your credit card so you’re using less of your credit limit
• Keeping the same bank account over time
• Updating the electoral roll with your current address

Remember, your score reflects how lenders see the information on your report. If new information is added that most lenders view positively, your score should increase. A good credit score means lenders are more likely to approve you for credit, and at better rates.

What lowers my credit score?

There are many possible reasons for a score drop, including:

• Missed payments or a default on one of your accounts
• Maxing out your credit card and only making the minimum payment
• Going into an unarranged overdraft on your bank account
• Making lots of credit applications in a short space of time

It’s important to avoid these behaviours as a bad credit score will limit your options when you want to take out credit.

What has the most impact on your credit score?

Records on your report usually carry the most weight when they’re new. Their impact on your score normally fades over time. After six years, things like late payments, defaults and county court judgments drop off your report completely.

It also depends on how most lenders view certain information. Serious signs of risk tend to matter more. For example, a single credit application typically makes a smaller dent than a late payment.

Does everyone’s score start at zero?

No. Credit reference agencies start calculating your score when you begin to build a credit history — for example, by opening a bank account or taking out a mobile phone contract. Once you’ve started to build a credit history, certain actions, such as making regular payments on time, will help to improve your credit score, while others may lower it.

What doesn’t affect my credit score calculation?

Your score isn’t affected by:

• Checking your credit score. Viewing your score won’t harm it, so check it as often as you like. Your Experian Credit Score updates every 30 days if you log in.
• Checking your eligibility for cards and loans. This leaves a soft check on your credit report, but lenders can’t see it and it won’t affect your score.
• Old information. Things like late payments, defaults and county court judgments generally stay on your credit report for six years. Once they fall off your report, they aren’t included in your credit score calculation.
• Your income, savings and employment. This information doesn’t appear on your credit report. However, lenders can ask about it when you apply for credit, and your answer may affect their decision.
• Everyday payments (usually). Normally, payments for things like Council Tax and Netflix won’t affect your score. But you can choose to share this information with Experian Boost which may improve your credit rating.

How often is my credit score calculated?

Your Experian Credit Score updates every 30 days when you log in, or every day with Experian CreditExpert. Other CRAs may update their scores on different schedules. Lenders will also calculate a credit score for you, but only when you apply for credit with them.

Wondering why your score hasn’t changed yet Not all lenders report their data at the same time. This means it can take between four and six weeks for new information to be added to your credit report.

Are rental payments included in my credit score calculation?

They can be. It depends on if your rental data is reported to credit reference agencies. Some landlords report rental data to credit reference agencies, but not all do. If your landlord doesn’t report rental data, there are things you can do to get this included in your credit score. Services such as Credit Ladder, Canopy, Wollit, Emma and Uplift Money can let you add your rental data to your credit report. Different credit reference agencies will calculate the impact of rental data on your credit score in different ways.

Which payments count when you calculate my credit score?

When credit reference agencies calculate your score, they generally look at payments for loans, mortgages, credit cards, overdrafts, and monthly utilities like mobile phone contracts and energy tariffs.

Everyday payments usually don’t affect your score — but you can change that with Experian Boost. See if you can give your score an instant lift by sharing information about:

• Payments into investments and savings
• Council Tax payments
• Digital subscriptions like Netflix, Spotify and Amazon Prime

Connecting to Experian Boost won’t harm your score.

How do lenders calculate your credit score?

Lenders will get a credit score from one of the UK’s three credit reference agencies (CRAs) — Experian, Equifax and TransUnion. But they will also get the credit report that the credit score is based on. Lenders can use the information in the credit report to calculate their own score. Lenders also sometimes choose to use credit scores and reports from more than one credit reference agency.

Credit reports are one element of how lenders make lending decisions. Lenders usually look at other information too. Things like your income, expenditure, and other details on your application form. It’s always up to the lender whether to offer or refuse you credit. Each has their own criteria for approval.

What your Experian Credit Score does is give you a good idea how different lenders might view you.

Is my credit score calculated differently to my eligibility rating?

Yes. Your credit score gives you an idea of how most lenders view you, while an eligibility rating shows your chances of approval for a specific credit offer. We calculate your eligibility based on what we know about your credit data and the lender’s criteria.

Has my credit score been calculated wrong?

If your score doesn’t look right, there are a few possible reasons, including:

• It hasn't updated yet. New information can take four to six weeks to appear on your report and change your score.
• You’re checking on different sites. There are three credit reference agencies in the UK that calculate your score. Each uses its own scale and methods, so it’s normal for your scores to look different.
• Errors on your report. You can see your credit report for free on the Experian app. You can also check your statutory credit report for free. If you notice any information that is incorrect or missing, you should contact us to let us know.
• Identity fraud. A sudden unexplained change to your score could be a sign that someone’s using your identity. Check your report and find out what to do if you’re a victim of identity fraud.

Does my partner’s credit history affect how my score is calculated?

It can, but only if you have a financial association. This isn’t created by marriage or moving in together. It happens if you:

• Open a joint bank account with them
• Apply for credit together, like a mortgage or loan
• Receive a joint county court judgment

A financial association means their credit history may affect a lender’s decision about whether to give you credit — even if you’re applying on your own this time.