We’re sorry to break it to you but the magic number you’ve been looking for doesn’t actually exist. This is because the 3 main CRA’s ( Equifax, Experian and TransUnion) all have different credit scoring models and score consumers differently.
In general terms - the higher your score the better as this means lenders will see you as a lower risk. I.e you can manage your finances in a responsible manner. And you’re more likely to be accepted for the credit you’re applying for.
CRA’s Scoring Groups
The table below shows you the different scoring ranges for the 3 main CRA’s in the UK.
When looking at customers, different companies will be looking for different things. So whilst you may fit the bill with one, you may not for another. Before you apply for credit it's probably a good idea to check your credit score, so you can make a more informed decision when applying for credit.
How are credit scores calculated?
The following are the 5 key things that make up your credit score;
- Address history: Your current address and any previous addresses.
- Credit history: Financial credit agreements, such as loans, credit cards, mortgages, overdrafts, mobile phone contracts, car finance and any late or missed payments.
- Credit applications: How many applications for credit you have made, including those where you have been rejected.
- Public records: Electoral roll information, any county court judgments (CCJs), bankruptcies or insolvencies
- Financial ties: This includes anyone you have taken out joint credit with – for example, a joint mortgage or bank account.
How long will it take to improve your score?
There are a whole variety of things you can do to improve your score - from one off actions like getting on the electoral roll to careful, long term credit use. And in time each of these steps will have an impact on your score.
But unfortunately it’s difficult to say how long it will take to improve your score. This is because it’s a combination of multiple factors including - your current financial situation, your financial habits, delays from lenders and institutions in providing the CRA with updated data.
The main thing is that you keep persevering on improving your credit score, as eventually it will go in the right direction.