Last reviewed April 2026
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A credit score is a number, typically between 0 and 999, that lenders use to assess how reliably you manage borrowing and repayments. The higher your score, the more likely you are to be approved for credit and offered lower interest rates. Scores are calculated by the three UK credit reference agencies: Equifax, Experian and TransUnion.
What a credit score is based on
Credit scores are calculated from information held on your credit file. The main factors include:
Payment history
Whether you've repaid loans, credit cards and bills on time. Even a single missed payment can lower your score. Multiple missed payments can lead to a default, which stays on your file for six years.
Credit utilisation
The proportion of your available credit you're currently using. Keeping this low (ideally below 25%) signals to lenders that you're not over-reliant on credit.
Length of credit history
How long you've been using credit. A longer, well-managed history is generally seen positively by lenders.
Electoral Roll registration
Being registered to vote at your current address verifies your identity and is one of the first things lenders check.
Recent credit applications
Each application for credit triggers a hard search. Multiple applications in a short period can suggest financial difficulty and reduce your score.
Good credit score vs poor credit score - what's the difference?
Your score can affect more than just loan approvals. Here's how a good and poor score compare in practice:
| Area | Good credit score | Poor credit score |
|---|---|---|
| Loan approval | More likely to be approved | Higher risk of being declined |
| Interest rates | Access to lower rates | Higher rates if approved |
| Loan terms | Longer repayment periods, more flexibility | Shorter terms, stricter conditions |
| Mortgage applications | Stronger position with lenders | Can make approval very difficult |
| Credit options | Wider range of products available | Limited options, often higher cost |
How to improve your credit score
Improving your score takes time, but each of these actions has a direct impact:
Make all repayments on time
Payment history is one of the most heavily weighted factors. Set up direct debits where possible to avoid accidental missed payments.
Keep credit utilisation low
Aim to use less than 25% of your available credit. Pay down balances rather than just making minimum payments.
Register on the Electoral Roll
One of the quickest wins. Registering at your current address can have an immediate positive effect on your creditworthiness.
Space out credit applications
Avoid applying for multiple credit products in a short period. Use soft credit checks to check eligibility without leaving a mark on your file.
Check your credit report for errors
Mistakes on your file can unfairly lower your score. Review your report regularly through Equifax, Experian or TransUnion and dispute anything incorrect.
Build credit history if you have none
Never having borrowed can also lower your score. See our guide on how to build credit history if you're starting from scratch.
Key takeaways
- ✓ A credit score is a number between 0 and 999 used by lenders to assess how reliably you manage credit
- ✓ The three UK credit reference agencies - Equifax, Experian and TransUnion - each calculate their own score
- ✓ Payment history and credit utilisation are among the most influential factors
- ✓ A good score improves your chances of approval and access to lower interest rates
- ✓ Defaults and most negative marks stay on your file for six years
- ✓ Never having borrowed can also lower your score. Building credit history matters
Common questions about credit scores
Check which responsible lenders you could be eligible for.
Eligibility check is a soft search and it won't affect your credit score.
Sources
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