Some of the factors that will affect your credit score include: However, while the score may differ slightly, they all take into account similar factors.
Equifax and Experian) since each company uses different algorithms to calculate your score. Thus, your overall credit score is the sum of the impact of these events.Ĭredit scores vary by the credit bureau (e.g. In the same breath, some actions you take can harm your credit score. This means that there are things you can do to have a positive impact on your credit score.
Most unpaid debt is written off after 6 years.įactors influencing credit scores can be positive or negative. In general, only the last 6 years of your credit history are used to calculate your credit score. We work with The Debt Advice Service who provide information about your options.
#Chart credit score range full#
This isn’t a full fact find, MoneyNerd doesn’t give advice. There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.įill out the 5 step form to find out more. If you have a good credit score, it means you have a consistent track record of repaying your debts, and therefore, you are more likely to receive loan approval. Put simply, a low credit score says you might default on a debt, making you more likely to be denied credit or given a loan at higher interest rates.Īnything above 700 is considered a good credit score. The lower your credit score, the higher the risk you are to lenders. In the UK, credit scores range from 0-999 for Experian and 0-1000 for Equifax. Your credit score is an indication of your creditworthiness. That being said, for most people, their credit score is a vital factor in getting the best credit at the most competitive interest rates. For example, when applying for a payday loan or a credit repair card. What Is Credit Score?įirstly, I’ll start by saying that, in some cases, your credit score is not used by lenders. But do you really know what credit score means? Or how is it calculated? I break it down and also explore the factors that can affect your credit score and the different ranges the two major credit score agencies in the UK operate. Your credit score can have a major impact on your life.
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