What is a Good Credit Score and How to Maintain it?
Although it may not feel like a completely fair system, building a good credit score is important as it enables you to access better borrowing rates on credit cards and loans.
Checking your credit score is free through sites like Experian, Credit Karma and ClearScore. Don’t worry if your credit score’s not perfect, there are things you can do to build it up - making better credit rates more obtainable.
Read on to explore what a good credit score is, how to get a loan with bad credit, and discover some tips for improving your credit score…
How to check your credit score
Keeping up-to-date with your credit score is important as it will give you an idea of the kinds of credit you may be eligible for.
Credit reference agencies will typically compile the following information:
A list of your current credit arrangements, like outstanding loan agreements and utility payment records.
Public record information, this will include things like County Court Judgements and any history of bankruptcy, home repossessions and debt relief orders - these will stay on your credit report for at least six years.
Items relating to fraud, i.e. whether you have committed or been a victim of fraud or identify theft.
Details of people who are financially linked to you, e.g. people who you have a joint bank account with.
Your name, date of birth, current and previous addresses, and whether you’re on the electoral register
Your current account provider, but only details relating to any overdraft information
In the UK, there are three main credit reference agencies and three associated websites where you can check your score, these are:
Experian - check your Experian Credit Report on www.experian.co.uk
Equifax - Equifax credit report available through www.clearscore.com
TransUnion - your TransUnion credit report can be reviewed on www.creditkarma.co.uk
The importance of checking your credit score with all three credit reference agencies
Most people will only look at their credit report from one agency; however, it’s worth getting a copy from all three reference agencies. This is because the agencies may hold slightly different information from different credit providers. Essentially, checking your credit score with the three providers will give you the best idea of how lenders view you.
Explore our What Information goes into Calculating a Credit Score? blog below for information on how credit reference agencies work out your credit score.