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.

What’s a good credit score and why is it important?

  • Usually the higher your credit score, the better
    However, the scale used varies depending on the credit reference agency used.
  • A good credit score means that you’re probably seen as low risk
    So banks and credit card providers may be more willing to lend to you.
  • You’re likely to be offered lower interest rates
    People with higher credit scores usually qualify for the lower rates. Read more on what an interest rate is.
  • You’re likely to be offered higher credit limits
    Meaning you’ll be able to borrow more, should you want to. Read more about credit limits

There is no single definitive score

Every bank and credit card provider calculates your credit score differently. Although, almost all lenders use a national credit reference agency to help make their decision.

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.

The application you submit

What you tell us about your current personal situation, including your income, employment status, address, spending and more.

Information from credit reference agencies

We’ll check your public records, court records and financial history with our selected credit reference agencies.

Your history with us

If you’re a current or past Lloyds Bank customer, we’ll look at how you’ve managed previous accounts, loans and credit cards.

An eligibility checker won’t impact your credit score

Many banks and providers offer soft eligibility checkers. These can help you see which credit cards you are eligible to apply for and what your credit limit is likely to be. Plus, they won’t affect your credit score. Ours is called One Check. To apply, you’ll need to submit your:

  • Bank sort code and account number.
  • Addresses from the last 3 years.
  • Annual income.
  • Employment status.
  • Spending commitments.

Start One Check

Tips that could help to improve your credit score

  • Always pay your bills, credit cards and loan payments on time.
  • Try not to max out your credit limits all the time.
  • Avoid applying for lots of credit cards or loans all at once as this could affect your credit score.
  • Manage your existing borrowing responsibly.
  • Sign on to the electoral register.


Checking your credit score

In the UK, there are many credit reference agencies you can check your credit score with. Each of them uses a different rating system. At Lloyds Bank, we use three major credit reference agencies, listed below:

Visit Experian

Visit TransUnion

Visit Equifax

Frequently Asked Questions

Key points on credit scores

  • A credit score takes into account the rating provided by the credit reference agencies. This rating is based on your credit history.
  • Lower risk borrowers get a higher score, higher risk borrowers get a lower score
  • A good credit score means you’re likely to be offered higher credit limits and rates for credit cards and loans.
  • You can build your credit score by making payments on time and not making too many credit applications in a short period.
  • You can check your ratings with agencies like Experian, TransUnion or Equifax.

Where next?

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.