Credit reference agencies calculate your credit score, a figure which gives potential lenders an indication of your creditworthiness.
There’s no such thing as a universal credit score – TransUnion, Experian and Equifax all calculate your score in a different way.
The higher your credit score, the better your chances of being accepted for credit.
Lenders look at your credit score, alongside other information, when deciding whether to lend you money.
Your credit score range explained
What is a credit score?
Your credit score is a three-digit number calculated from the information a credit reference agency (CRA) holds about you.
The idea is that your credit score reflects your creditworthiness — how likely you would be to repay your debts on time.
The higher your credit score, the better.
Your credit score helps lenders make decisions about whether or not to lend to you, and at what interest rates.
Why are there different credit scores?
There’s no such thing as a universal credit score.
This is because there are three credit reference agencies in the UK and each will use different information, formulas, and criteria to calculate your score.
Each credit reference agency will also have different credit bands and different maximum scores.
On top of that, lenders will also use their own credit scoring systems to decide your credit score.
What is a credit reference agency?
A credit reference agency (CRA) is an independent organisation which gathers and securely stores details about your credit history from lenders and public bodies.
The data includes things such as your:
credit applications
accounts information
financial behaviour
This information is used to calculate your credit score.
Who are the credit reference agencies?
The UK has three CRAs:
TransUnion (formerly CallCredit)
Experian
Equifax
Each agency holds different information about you, and calculates your credit score in a different way, up to a different maximum amount. TransUnion has a maximum score of 710, Experian 999, and Equifax 700.
How does TotallyMoney calculate my credit score?
TotallyMoney uses data from TransUnion to build your Free Credit Report and Live Score.
Lenders might use a credit score from one or more of the CRAs, alongside other information about you, to decide whether to lend you money and, if so, at what interest rate.
You should check your credit report before making an application for credit such as a credit card, loan or mortgage.
Your credit score with TransUnion
TransUnion has a maximum score of 710.
You can see what your TransUnion credit score means in terms of your credit rating by looking at the table below.
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Score | Band |
|---|---|
| 0-550 | Very Poor |
| 551-565 | Poor |
| 566-603 | Fair |
| 604-627 | Good |
| 628-710 | Excellent |
Your credit score with Experian
Experian calculates your credit score out of a maximum of 999.
Experian’s credit score ranges are as follows:
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Score | Band |
|---|---|
| 0-560 | Very Poor |
| 561-720 | Poor |
| 721-880 | Fair |
| 881-960 | Good |
| 961-999 | Excellent |
Your credit score with Equifax
Equifax calculates your credit score out of a maximum of 700.
Equifax credit score ranges are as follows:
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Score | Band |
|---|---|
| 0-279 | Very Poor |
| 280-379 | Poor |
| 380-419 | Fair |
| 420-465 | Good |
| 466-700 | Excellent |
Why is it important to have a good credit score?
The higher your credit score, the more options you’ll have when it comes to applying for credit.
If you have a high credit score you’re more likely to be accepted for credit such as a mortgage, credit card or loan.
You’ll also find it easier to take out a post-pay utility contract, monthly mobile phone contract or car finance deal.
When it comes to credit cards, if you have a high credit score you’re more likely to be offered a credit card with:
a higher credit limit
a competitive interest rate
the maximum length 0% interest deal on purchases or balance transfers
reward or loyalty points, or cashback
If you have a poor credit score you’ll find it more difficult to be accepted for any type of credit.
In some cases you’ll be turned down for credit or offered a low credit limit. In others, you’ll be offered credit at a higher interest rate than average.
Read our guide to how to fix a bad credit score.
