What is a credit score?
Helping you to better understand your credit score and how it affects you.
Credit scoring is an established industry-wide process used by lenders to make quick decisions on applications for credit.
- Your credit score shows lenders like us whether your application falls into a low or high-risk category.
- This tells us your credit risk and whether or not we can responsibly accept your application.
How we calculate your credit score
We calculate your credit score based on many years’ experience of lending to borrowers. To make sure our method gives us accurate and impartial results, we regularly test it and make any improvements we can. You can see some of the information we use below.
Frequently Asked Questions
Every provider and bank uses a different set of criteria.
Some providers may offer credit cards just for people with low credit scores, although the rates and fees may be higher.
Just be sure to remember – submitting lots of applications can damage your credit score.
All the credit agencies tend to collect the same sort of data on you. This may include previous applications to lenders as well as public records like the electoral register and court records.
If there’s something on your credit file you’d like to correct or explain, you can contact the agency in question to fix this.
They’ll make a Notice of Correction, which anyone searching your file in the future must take into account.
If you’ve never borrowed money before, your credit score can reflect this as you have no track record of being a responsible borrower.
That’s why many people get their first credit card as a way to build up a stronger credit score for later in life.
We suggest making payments with your credit card that you can afford to pay back in full by the due date. To find out more, read our guide for first-time credit card customers.
Important legal information
Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.