What is a Good Credit Score?

What is a Good Credit Score?

The problem with this question is that in the UK there are several big players in the credit profile market and they all differ on how they use credit scoring. Experian, Equifax and Call Credit are the most used credit reference agencies in the UK.

Experian

961-999 = Excellent

This is at the top end of the Experian scale, and most lenders would regard people in this category to be very low risk. This is because they would expect very few people with credit scores in this region to have problems making repayments.

881-960 = Good

People that have a score of between 881 and 960 would most likely be viewed as low risk by lenders. This is because lenders would expect few people in this category to be experiencing serious issues with repaying their credit.

721-880 = Fair

This is a slight improvement on the previous two scoring bands, as lenders would expect people that have scores of between 721 and 880 to be a moderate risk. This is because they would expect a small number of people in this category to experience severe problems with repaying their credit.

561-720 = Poor

Those with a credit score of between 561 and 720 would still be classed as high risk by lenders. This is because lenders would expect a large number of people that fall into this category to have severe problems with repaying their credit.

0-560 = Very Poor

These scores are at the lowest end of the table and people that have a credit score of between 0-560 are likely to be classed as very high risk by lenders. This is because lenders would expect those falling into this category to have severe problems with repaying credit.

Equifax

Equifax is the second largest of the three credit reference agencies and its top score when it comes to credit scoring is 467 or above (classified as excellent). The average Equifax credit score in the UK is 430. The Equifax credit scoring guidelines are as follows:

467 (and above) = Excellent

This score is at the top end of the Equifax scale, and most lenders would regard people in this category to be very low risk. This is because they would expect very few people with credit scores in this region to have issues with repayment of any debt.

420-466 = Good

People that have a score of between 420 and 466 would most likely be viewed as low risk by lenders. This is because lenders would expect few people in this category to be experiencing serious issues with repaying any debt owed.

367- 419 = Okay

This is a slight improvement on the previous two scoring bands, as lenders would expect people that have scores of between 367 and 419 to be a moderate risk. This is because they would expect a small number of people in this category to experience serious problems with repaying any debt they owe.

279 – 366 = Poor

Those with a credit score of between 279 and 366 would still be classed as high risk by financial providers. This is because lenders would expect a large number of people that fall into this category to have severe problems with repaying their debt obligations.

0-278 = Very Poor

These scores are at the lowest end of the table and people that have a credit score of between 0-278 are likely to be classed as very high risk by lenders. This is because lenders would expect those falling into this category to have severe problems with repaying debts.

Call Credit

Call Credit recommend using Credit Compass to check your credit profile. The Credit Compass credit score range is as follows:

Excellent – 651 – 800

Very Good – 601 – 650

Good – 551 – 660

Fair – 501 – 550

Poor – Up to 500

How to Access Your Credit Report

A £2 statutory credit report is a one-off snapshot of your credit report and credit history. It contains financial information about you and lenders will use it to make a decision whenever you apply for credit.

You have the statutory right to access your personal credit information, and Callcredit is permitted under the Data Protection Act 1998 to charge you £2 for fulfilling each request. Visit www.callcreditstatreport.co.uk to obtain your report.

Access to your scores isn’t possible via the statutory report, but you can get your credit score from any of the three credit reference agencies when you join a monthly monitoring service via a free trial. Start here with your free online credit report trial.

For more information about getting car finance if you have experienced bad credit in the past check out our resources section where we have information dedicated to these topics.