What is a credit score?

Quick answer

Your credit score is a number that lenders use to decide how reliable you are when it comes to repaying money. It’s based on how you’ve handled money in the past. The higher your score, the more likely you are to be approved for credit, and at the best rates.

Your credit score is a number that reflects your chances of being approved for credit such as loans, credit cards and phone contracts. A higher score can open the door to better offers, like larger borrowing amounts and lower interest rates. There are several ways to build a good credit score — and you can always view your Experian Score for free.  

We’ll show you what your credit score means, and why it’s important when you’re looking for credit, insurance or a new home.  

What does a credit score mean?

Your credit score is based on information in your credit report, and your track record of managing money. Lenders look at your score and report when you apply for credit.  

A higher score is a sign of responsible borrowing, like making payments on time. Lenders are more likely to approve you, and you may be able to borrow more and at cheaper rates.  

A lower score means lenders may see signs of risk in your credit history, like missed payments or a maxed-out credit card. You’re more likely to be refused credit or offered smaller amounts and higher rates.  

What does my Experian Credit Score mean?

Your Experian Credit Score is a number between 0 and 1250. Good credit scores open the door to better credit deals, while bad credit scores can make it harder to get approved. Learn about your Experian score here. 

Do I have more than one credit score?

Yes. There are three credit reference agencies (CRAs) in the UK, including Experian. Each has their own way of calculating your score and deciding your credit score’s meaning — which is why your score looks different on different sites.  

Also, lenders may calculate their own score for you when you apply. They tend to use information from CRAs, your application form and their own records. Lenders won’t show you this score, but if you ask them, a lender must tell you which CRA they used to get information about you.

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

How do I find out what my credit score is?

It’s free to check your Experian Credit Score, which updates every 30 days if you log in, or every day with Experian CreditExpert. Viewing your score won’t hurt it — so check as often as you like! 

Why is my score important?

Your credit score matters because it helps you understand your chances of getting things like credit cards, loans, car finance and more. Improving your score can also improve your financial options, from upgrading your phone contract to buying a home.
Looking after your score can help you:

• Access credit when you need it 
• Get lower interest rates 
• Borrow larger amounts 
• Get cheaper insurance 
• Rent from landlords or letting agents

Why would I need to access credit?

Credit can be useful in many areas of life. For example: 

• Credit cards can offer a flexible way to spend, get purchase protection and access rewards. 
• Loans can help you spread a cost (such as a car or home improvements) over time in monthly instalments. 
• Mortgages are the way most people buy a home. 
• Car finance lets you spread the cost of buying a car or rent one before having the option to buy it.

Our credit score expert says

“Checking your credit score is a good way to keep an eye on your financial health. There are lots of ways you can improve it, such as paying down credit cards. It can be rewarding to watch your score go up as you stick to good habits.” 

— Jacqui Hamilton, credit score specialist.

How does credit scoring work?

Your Experian Credit Score is based on information in your credit report, including things like your: 

• Payments to lenders — Late payments will lower your credit score, while a track record of on-time payments is a good way to show lenders you’re reliable.  
• Credit utilisation — This is just a fancy way of saying ‘how much credit you’re using’. Say you own one credit card with a £1,000 limit. If you spent £500 on this card, your credit utilisation would be 50%. Keeping your credit utilisation low, ideally under 25%, can help your score.
• Credit applications — Recent applications lower your score, especially if you make lots in a short space of time.   
• Financial associations — A financial association is someone you’re linked to through a joint financial account (such as a mortgage, loan or bank account).

 
Understanding what affects your score and how your score is calculated can help you protect and improve it over time.  

What is my credit score used for?

Your credit score helps you understand your chances of getting credit.

It also gives lenders an idea of how risky it might be to lend to you. Your score is one of the things they look at when deciding whether to accept your application.

Your credit score influences your chances of getting things like:

• Credit cards, loans and mortgages
• Car finance
• Gas and electricity monthly contracts
• Mobile phone contracts
• Insurance instalment plans
• Retail credit

How should I use my credit score?

Checking your score lets you keep an eye on your financial health and plan for future credit applications. It can help you: 

• Notice when you need to take action to protect your score 
• Track your progress as you build good habits 
• Adjust your expectations around what you can borrow 
• Decide whether to take out credit or find an alternative  
• Apply for credit with confidence, whether it’s a 0% card or bad credit loan.

Is it free to check my credit score?

Yes. It will always be free to check your credit score with Experian. Your score updates every 30 days if you log in, or every day with Experian CreditExpert. You can also check your Experian Credit Report for free in our app.

Will checking my credit score lower it?

No. Checking your score will never affect it — no matter how often you look. Lenders can’t see when you’ve viewed your score either. Go ahead and check as many times as you like! 

What is a credit score - FAQs

What are five factors that affect a credit score?

Lots of factors affect your credit score, but here are five key ones:

1. Payment history — On-time payments boost your score while missed payments lower it. 
2. Credit utilisation — You may see your score change based on how much of your available credit you’re using. 
3. New accounts — Opening new accounts regularly can dent your score, while keeping the same well-managed accounts over time can improve it. 
4. Recent applications — Your score dips with each application, though it should recover if you manage credit well. 
5. Signs of financial difficulty — Things like county court judgments and debt management plans have a negative impact on your score.

 
 Learn more about what affects your score.  

What credit score does an 18-year-old start with?

You won’t get a credit score just because you turned 18. Your score is calculated when you begin to build a credit history, such as opening a bank account or taking out a mobile phone contract.

How you handle credit is what matters, not your age. You can look after your score by borrowing responsibly and paying lenders on time.  

What is a credit report? 

Your credit report is a detailed record of your credit history from the past six years, including your: 

• Credit accounts 
• Payments to lenders 
• Available credit 
• Outstanding balances 
• Credit applications

Lenders look at the information in your report when you apply for credit. Your credit score reflects how they are likely to view this information.  

How can I learn more about what my credit score means?

Get extra insights and personalised tips for improving your score with a CreditExpert subscription. There’s a 30-day free trial for new customers — after that, you’ll pay £14.99 per month. Cancel at any time.