What is a 'bad' credit score?
A low credit score could make it harder to get credit, but you can work to improve it.
Is my credit score 'good' or 'bad'?
The measurement scale used by each credit reference agency varies but, as a general rule, the higher the number, the stronger your chances are of being accepted when you make a credit application.
Having a low score doesn’t always mean an application won’t be accepted – lenders and service providers also consider other factors, like affordability and any past account history – it may just mean that you’re offered higher interest rates, and a more limited amount of credit.
Below are examples from the credit reference agencies Lloyds Bank use:
Experian
|
Excellent |
Very good |
Good |
Poor |
Very poor |
|---|---|---|---|---|
Excellent961 - 999 |
Very good881 - 960 |
Good721 - 880 |
Poor561 - 720 |
Very poor0 - 560 |
Equifax
|
Excellent |
Very good |
Good |
Poor |
Very poor |
|---|---|---|---|---|
Excellent811 - 1000 |
Very good671 - 810 |
Good531 - 670 |
Poor439 - 530 |
Very poor0 - 438 |
TransUnion
|
Excellent |
Good |
Ok |
Needs some work |
Needs work |
|---|---|---|---|---|
Excellent628 - 710 |
Good604 - 627 |
Ok586 - 603 |
Needs some work551 - 585 |
Needs work0 - 550 |
What causes a bad credit score?
Credit reference agencies collect information from public records, lenders and other service providers. Factors which could impact your credit score include:
If you have joint accounts
Things like bank accounts, mortgages and even utility bills may create a financial link between you and any joint account holders. This may impact your future credit eligibility if the joint account holder doesn’t have a good credit score.
People you’re linked to financially will show on your credit record. If you’re no longer linked to someone, you could contact each credit reference agency to submit a notice of disassociation.
Moving home
Your address links your financial activity and identity, helping to prevent fraud. Having the same address for a long period implies that your circumstances are reasonably stable.