What is a good credit score?
Updated: Wednesday, 28 June 2023
There’s no magic number when it comes to what is considered a ‘good’ credit score. Different companies will be looking for different requirements in potential customers.
Knowing what your credit score is, and whether or not you have a good score, is one of the first steps you can take to improve your chances of getting credit.
How to check your credit score
In the UK, there are three main credit reference agencies: Experian, Equifax, and TransUnion, which you can use to help you understand your credit score.
All offer a credit report service where you can find your score, and see historic and recent changes that might have affected it.
The information in this article is accurate as of 28 June 2023.
What are the different credit score ranges?
Whether you’ve got a good or bad credit rating, your score will differ depending on what credit reference agency you are using. There are three main credit reference agencies (CRAs) in the UK, and they all use different ranges to represent a good or bad score.
You can see below the credit score ranges that each CRA uses:
Experian: 0-999
Equifax: 0-1000
TransUnion: 0-710
They each have different ranges because they have different scoring models.
It is important to know that there is a difference between a CRA and a credit report service. Some credit report services (such as ClearScore) use different score ranges to the CRAs. We’ll explain this in more detail later on.
What is a good credit score?
As the CRAs reviewing your credit score have different scoring models, they also have their own understanding of what a good credit score looks like.
There’s no magic number when it comes to what is considered a ‘good’ credit score. Different companies will be looking for different requirements in potential customers.
Knowing what your credit score is, and whether or not you have a good score, is one of the first steps you can take to improve your chances of getting credit.
How to check your credit score
In the UK, there are three main credit reference agencies: Experian, Equifax, and TransUnion, which you can use to help you understand your credit score.
All offer a credit report service where you can find your score, and see historic and recent changes that might have affected it.
The information in this article is accurate as of 28 June 2023.
What are the different credit score ranges?
Whether you’ve got a good or bad credit rating, your score will differ depending on what credit reference agency you are using. There are three main credit reference agencies (CRAs) in the UK, and they all use different ranges to represent a good or bad score.
You can see below the credit score ranges that each CRA uses:
Experian: 0-999
Equifax: 0-1000
TransUnion: 0-710
They each have different ranges because they have different scoring models.
It is important to know that there is a difference between a CRA and a credit report service. Some credit report services (such as ClearScore) use different score ranges to the CRAs. We’ll explain this in more detail later on.
What is a good credit score?
As the CRAs reviewing your credit score have different scoring models, they also have their own understanding of what a good credit score looks like.
What is a good Experian credit score?
Experian credit scores range from 0-999, so with this in mind the credit scores classed as ‘good’ and ‘excellent’ are:
Good: 881-960
Excellent: 961-999
What is a good Experian credit score?
Experian credit scores range from 0-999, so with this in mind the credit scores classed as ‘good’ and ‘excellent’ are:
Good: 881-960
Excellent: 961-999
What is a good Equifax credit score?
Equifax has a different scoring model, with their ‘good’ score sitting much more in the middle of their scoring range. Equifax’s credit score range changed in 2021 when their range increased to 0-1000 and they removed their ‘very poor’ label.
Their scores are now as below:
Good: 531-670
Very Good: 671-810
Excellent: 811-1000
What is a good Equifax credit score?
Equifax has a different scoring model, with their ‘good’ score sitting much more in the middle of their scoring range. Equifax’s credit score range changed in 2021 when their range increased to 0-1000 and they removed their ‘very poor’ label.
Their scores are now as below:
Good: 531-670
Very Good: 671-810
Excellent: 811-1000
What is a good TransUnion credit score?
TransUnion’s credit score range goes from 0-710, with ‘good’ and ‘excellent’ scores being near the higher end of their scoring model:
Good: 604-627
Excellent: 628-710
What is a good TransUnion credit score?
TransUnion’s credit score range goes from 0-710, with ‘good’ and ‘excellent’ scores being near the higher end of their scoring model:
Good: 604-627
Excellent: 628-710
What is a good ClearScore credit score?
ClearScore is one of the most popular credit report services. They are not a CRA because they do not collect the information themselves. Instead, they are partnered with Equifax, and use their data.
Although ClearScore use Equifax data, ClearScore’s score ranges are different. They also rebranded these in their app, so they aren’t called ‘good’ or ‘excellent’ scores, but these are their rough equivalents:
Looking good: 605-724
Soaring high: 725-1000
What is a good ClearScore credit score?
ClearScore is one of the most popular credit report services. They are not a CRA because they do not collect the information themselves. Instead, they are partnered with Equifax, and use their data.
Although ClearScore use Equifax data, ClearScore’s score ranges are different. They also rebranded these in their app, so they aren’t called ‘good’ or ‘excellent’ scores, but these are their rough equivalents:
Looking good: 605-724
Soaring high: 725-1000
What is a good Credit Karma credit score?
Credit Karma is another credit report service. They are not a CRA. The difference between a CRA and a credit report service is that a CRA gathers information about someone’s credit history. A credit report service simply takes this information from a CRA and displays it in a report for you to look at.
Credit Karma uses the same credit score ranges as TransUnion, with the same labels for ‘good’ and ‘excellent’ scores:
Good: 604-627
Excellent: 628-710
What is a good Credit Karma credit score?
Credit Karma is another credit report service. They are not a CRA. The difference between a CRA and a credit report service is that a CRA gathers information about someone’s credit history. A credit report service simply takes this information from a CRA and displays it in a report for you to look at.
Credit Karma uses the same credit score ranges as TransUnion, with the same labels for ‘good’ and ‘excellent’ scores:
Good: 604-627
Excellent: 628-710
What is a bad credit score?
We now know what a good credit score is, but what is a bad credit score? The term ‘bad’ or ‘poor’ is a relative term based on how each credit score is calculated, but it gives you an indication of how likely you are to be accepted for credit.
Like with good credit scores, bad credit scores vary between different CRAs:
What is a bad ClearScore credit score?
ClearScore’s ranges are quite different to the traditional ‘very poor’, ‘poor’, and ‘fair’ system. For ClearScore, their lowest ranges are:
Let’s start climbing: 0-409
Moving on up: 410-519
These aren’t officially the same as ‘poor’ and ‘fair’ but if you fall into either of these two categories, there might be some things you can do to improve your credit score.
What is a bad Credit Karma credit score?
Credit Karma use data from TransUnion, with their credit score range being 0-710, but they use different names:
Needs work: 0-565
Fair: 566-603
‘Needs work’ is the same as ‘very poor’ and ‘poor’.
Can you get finance with a bad credit score?
Getting finance with a poor or very poor credit score is usually more difficult. This is because you might get refused by mainstream lenders, and may have to use a specialist bad credit lender.
A bad credit score means there might be more risk in lending to that customer. Bad credit can be caused by several factors such as missed payments or defaulting on debt.
If you are looking for vehicle finance, we’re one of the leading lenders of specialist bad credit car finance. To get started, we’d recommend trying our car finance calculator to see what your finance might look like with us, depending on whether you have a good or bad credit score, and how much you are looking to borrow.
Representative 35.5% APR.
For more information, we’ve written a guide that answers the common question ‘what credit score do you need for car finance?’. It explains why there isn’t a specific credit score that you need, and the other factors that determine whether you will be approved.
How is a credit score calculated?
To calculate your credit score, CRAs assess all the information they can gather about your credit history. Lenders and creditors report information, such as your repayment history and if you miss any payments, to the CRAs who then use this to determine your credit score.
There are lots of additional factors they consider when calculating your score, these include:
- How much money you owe
- The length of your credit history
- How many lines of credit you have
- What your credit limits are
Your credit score will be different between each of the CRAs, for two reasons. First, they use their own credit scoring models and ranges, as we explained earlier. Also, not all lenders report information to all three CRAs. Many do, but some might only report to two, one, or none at all.
Each CRA will have its own way of calculating a credit score, but the same rule of thumb applies: a higher score might indicate a higher chance of being approved for credit.
Why has my credit score gone down?
There are lots of potential reasons for a drop in your credit score. This could be anything from missing a repayment or applying for multiple forms of credit in a short space of time to closing long-standing accounts or frequently changing your address.
Other markers such as a CCJ or an IVA on your credit file can also negatively impact your score. For more, check out our guide that explains what affects your credit score.
Why is my credit score different to people I know?
Everyone’s credit score is different, and just because you earn the same as someone or live in the same house, this does not mean your credit scores will be similar.
Think of your school exam results; just because you are in the same class as someone doesn’t mean you will get the same mark. That’s why it might be handy to check your credit score on all three CRAs (Experian, Equifax, and TransUnion) to get the full picture before you apply for credit.
How to improve your credit score
Checking your credit score and taking steps that might improve it is one of the first steps you can take that might increase your chances of getting finance.
Some things that might improve your score include:
- Registering for the electoral roll
- Make sure your credit report is up-to-date and correct
- Reduce your credit utilisation (how much of your available credit you use)
Other steps, like making your regular payments on time or cutting ties with bad borrowers, might help to improve your score over the long term. Another example is that financing a car can build your credit score, as long as you make your repayments in full and on time.
FAQs about good credit scores
What are the benefits of a good credit score?
There are plenty of reasons why a good credit score is valuable. Your credit score is a summary of your credit report, which is one of several factors lenders consider when assessing your application.
You may find it easier to be approved by mainstream lenders for things like a loan or a credit card. You might also have a bigger choice of lenders to choose from, depending on what kind of credit you are applying for.
If lenders believe you’re lower risk, they might offer you lower interest rates, which could reduce the amount of interest you need to pay on any credit you take out. They might also offer you a higher credit limit if you have a history of repaying on time.
Does checking your credit score lower it?
No, checking your credit score yourself by using a website or app doesn’t affect it in any way.
However, applying for credit where the lender uses a hard credit search will negatively affect your credit score.
Some lenders, including Moneybarn, use a soft search when you apply for car finance. This doesn’t affect your credit score but will give you an indication whether they can offer you finance.
Which credit reference agency is the best?
The three CRAs (Experian, Equifax, and TransUnion) are all accurate ways to determine your credit score. Neither CRA is more accurate than another, but each has different methods for collecting and displaying its data.
Not every lender and creditor report their information to all three CRAs. That’s another reason why your credit score might differ slightly depending on where you look.
It’s also worth knowing that not all lenders use all three CRAs to make a judgement on an application.
What is a bad credit score?
We now know what a good credit score is, but what is a bad credit score? The term ‘bad’ or ‘poor’ is a relative term based on how each credit score is calculated, but it gives you an indication of how likely you are to be accepted for credit.
Like with good credit scores, bad credit scores vary between different CRAs:
What is a bad ClearScore credit score?
ClearScore’s ranges are quite different to the traditional ‘very poor’, ‘poor’, and ‘fair’ system. For ClearScore, their lowest ranges are:
Let’s start climbing: 0-409
Moving on up: 410-519
These aren’t officially the same as ‘poor’ and ‘fair’ but if you fall into either of these two categories, there might be some things you can do to improve your credit score.
What is a bad Credit Karma credit score?
Credit Karma use data from TransUnion, with their credit score range being 0-710, but they use different names:
Needs work: 0-565
Fair: 566-603
‘Needs work’ is the same as ‘very poor’ and ‘poor’.
Can you get finance with a bad credit score?
Getting finance with a poor or very poor credit score is usually more difficult. This is because you might get refused by mainstream lenders, and may have to use a specialist bad credit lender.
A bad credit score means there might be more risk in lending to that customer. Bad credit can be caused by several factors such as missed payments or defaulting on debt.
If you are looking for vehicle finance, we’re one of the leading lenders of specialist bad credit car finance. To get started, we’d recommend trying our car finance calculator to see what your finance might look like with us, depending on whether you have a good or bad credit score, and how much you are looking to borrow.
Representative 35.5% APR.
For more information, we’ve written a guide that answers the common question ‘what credit score do you need for car finance?’. It explains why there isn’t a specific credit score that you need, and the other factors that determine whether you will be approved.
How is a credit score calculated?
To calculate your credit score, CRAs assess all the information they can gather about your credit history. Lenders and creditors report information, such as your repayment history and if you miss any payments, to the CRAs who then use this to determine your credit score.
There are lots of additional factors they consider when calculating your score, these include:
- How much money you owe
- The length of your credit history
- How many lines of credit you have
- What your credit limits are
Your credit score will be different between each of the CRAs, for two reasons. First, they use their own credit scoring models and ranges, as we explained earlier. Also, not all lenders report information to all three CRAs. Many do, but some might only report to two, one, or none at all.
Each CRA will have its own way of calculating a credit score, but the same rule of thumb applies: a higher score might indicate a higher chance of being approved for credit.
Why has my credit score gone down?
There are lots of potential reasons for a drop in your credit score. This could be anything from missing a repayment or applying for multiple forms of credit in a short space of time to closing long-standing accounts or frequently changing your address.
Other markers such as a CCJ or an IVA on your credit file can also negatively impact your score. For more, check out our guide that explains what affects your credit score.
Why is my credit score different to people I know?
Everyone’s credit score is different, and just because you earn the same as someone or live in the same house, this does not mean your credit scores will be similar.
Think of your school exam results; just because you are in the same class as someone doesn’t mean you will get the same mark. That’s why it might be handy to check your credit score on all three CRAs (Experian, Equifax, and TransUnion) to get the full picture before you apply for credit.
How to improve your credit score
Checking your credit score and taking steps that might improve it is one of the first steps you can take that might increase your chances of getting finance.
Some things that might improve your score include:
- Registering for the electoral roll
- Make sure your credit report is up-to-date and correct
- Reduce your credit utilisation (how much of your available credit you use)
Other steps, like making your regular payments on time or cutting ties with bad borrowers, might help to improve your score over the long term. Another example is that financing a car can build your credit score, as long as you make your repayments in full and on time.
FAQs about good credit scores
What are the benefits of a good credit score?
There are plenty of reasons why a good credit score is valuable. Your credit score is a summary of your credit report, which is one of several factors lenders consider when assessing your application.
You may find it easier to be approved by mainstream lenders for things like a loan or a credit card. You might also have a bigger choice of lenders to choose from, depending on what kind of credit you are applying for.
If lenders believe you’re lower risk, they might offer you lower interest rates, which could reduce the amount of interest you need to pay on any credit you take out. They might also offer you a higher credit limit if you have a history of repaying on time.
Does checking your credit score lower it?
No, checking your credit score yourself by using a website or app doesn’t affect it in any way.
However, applying for credit where the lender uses a hard credit search will negatively affect your credit score.
Some lenders, including Moneybarn, use a soft search when you apply for car finance. This doesn’t affect your credit score but will give you an indication whether they can offer you finance.
Which credit reference agency is the best?
The three CRAs (Experian, Equifax, and TransUnion) are all accurate ways to determine your credit score. Neither CRA is more accurate than another, but each has different methods for collecting and displaying its data.
Not every lender and creditor report their information to all three CRAs. That’s another reason why your credit score might differ slightly depending on where you look.
It’s also worth knowing that not all lenders use all three CRAs to make a judgement on an application.
For a better road ahead
Moneybarn is a member of the Finance and Leasing Association, the official trade organisation of the motor finance industry. The FLA promotes best practice in the motor finance industry for lending and leasing to consumers and businesses.
Moneybarn is the trading style of Moneybarn No. 1 Limited, a company registered in England and Wales with company number 04496573, and Moneybarn Limited, a company registered in England and Wales with company number 02766324. The registered address for these companies is: Athena House, Bedford Road, Petersfield, Hampshire, GU32 3LJ.
Moneybarn’s VAT registration number is 180 5559 52.
Moneybarn Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702781)
Moneybarn No. 1 Limited is authorised and regulated by the Financial Conduct Authority (Financial Services reference No. 702780)
