What is a ‘good’ credit score?
When applying for credit, a ‘good’ credit score is an important factor in being accepted.
A quick summary
What is considered a ‘good’ credit score?
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.
Maintaining a good credit score isn’t a guarantee you’ll be accepted – lenders and service providers look at other factors including affordability and any past account history – but it still gives you a useful impression of your financial position at any moment in time.
Below are examples from the credit reference agencies Lloyds Bank use:
Experian
|
Excellent |
Very good |
Good |
Fair |
Low |
|---|---|---|---|---|
|
Excellent 1,121 - 1,250 |
Very good 1,001 - 1,120 |
Good 861 - 1,000 |
Fair 641 - 860 |
Low 0 - 640 |
Equifax
|
Excellent |
Very good |
Good |
Poor |
Very poor |
|---|---|---|---|---|
|
Excellent 811 - 1000 |
Very good 671 - 810 |
Good 531 - 670 |
Poor 439 - 530 |
Very poor 0 - 438 |
TransUnion
|
Excellent |
Good |
Ok |
Needs some work |
Needs work |
|---|---|---|---|---|
|
Excellent 628 - 710 |
Good 604 - 627 |
Ok 566 - 603 |
Needs some work 551 - 565 |
Needs work 0 - 550 |
How to improve your credit score
Anything you do will take time, but you could improve your credit score by:
- Paying all bills on time – including credit repayments, utility and other household bills.
- Managing accounts well – stay below your credit limits and try to reduce debit balances whenever possible.
- Limiting applications – whether or not you’re accepted, ‘hard’ credit searches could impact your credit score, especially if you make a number of full applications in a short period of time.
- Registering to vote – it may improve your credit score to be on the electoral register.
What damages your credit score?
Below are just a few of the things which may impact your credit score:
- Missed or late payments – it could help to set up automatic Direct Debit payments. If you ever find yourself experiencing financial difficulties and can’t manage your payments, lenders and service providers may be able to help.
- How accounts are managed – lenders and service providers will report arrears, missed, late or defaulted payments, and if you go over any agreed credit limits.
- Making lots of applications – whether or not you’re accepted, ‘hard’ credit searches could impact your credit score.
- Not being on the electoral register – being on the electoral roll is one way your identity and home address can be confirmed.
Where next?
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