Check your credit score today

See your credit score in minutes. It’s free, forever.

See your score

What is a good/bad credit score?

Understanding what makes a good and bad credit score is the first step to being accepted for credit (and at the best rates).

Image by Giorgio Trovato

Check your credit score today

See your credit score in minutes. It’s free, forever.

See your score

When it comes to applying for a credit, there’s a vital piece of information that impacts how lenders and banks view you: your credit score.

Understanding what makes a good and bad credit score is the first step to being accepted for credit, and getting the very best deals.

What exactly is a credit score?

A credit score is a three-digit number used by lenders to determine whether you qualify for credit, such as a loan or credit card.

Your credit score is based on your credit report, which is a record of your credit history and how you’ve managed your finances in the past. This allows lenders to assess your level of risk when you apply for credit.

Who calculates your credit score?

Your credit score is calculated by a credit reference agency (CRA). There are 3 CRAs in the UK: Equifax, Experian and TransUnion. At ClearScore, we show you your Equifax credit score, which ranges from 0 to 700.

Each CRA is sent information by lenders about the credit you have and how you manage it. Other information, such as public records like the electoral roll and court judgments, are also sent to the CRAs and form part of your credit report.

What is a good/bad credit score?

There is no ‘magic’ credit score that will guarantee that you get accepted for credit. Also, different lenders are looking for different things, so you might get refused credit by one lender and accepted by another.

Remember, your credit score is a useful indication of your creditworthiness, but lenders will look at other factors (such as your income and debt levels) before deciding whether to lend to you.

Below are the Equifax score bands and how we refer to them at ClearScore:

Credit score

Equifax band

ClearScore name

0-279

Very poor
This indicates a very poor Equifax credit score.

Raise your game

280-379

Poor
This indicates a poor Equifax credit score.

On the up

380-419

Fair
This indicates a fair Equifax credit score.

On good ground

420-465

Good
This indicates a good Equifax credit score.

Looking bright

466+

Excellent
This indicates an excellent Equifax credit score.

Soaring high

What impacts your credit score?

There are a number of factors that impact your credit score, including:

Factor

Reason

Repeatedly missing or making late payments

This suggests you’ll miss payments in the future

Defaults, Court judgments, bankruptcy

This suggests you can’t afford the debt you’ve taken on

Applying for lots of credit in a short period of time

Lenders may assume you’re going through financial difficulties and therefore you may appear high risk

Having a large amount of credit available to use

Lenders may assume you’re more risky, as you have the potential to run up high debts

Frequent change of address

Lenders may assume you’re less stable

Mistakes on your report

If your report has mistakes, it won’t be a true reflection of how you manage credit. You can fix mistakes here.

What does it mean if your credit score is high?

Lenders tend to look at your credit score when you apply for credit, such as a credit card. They’re looking for someone who will be able to meet the repayments - someone who is low risk.

A higher credit score means your credit report contains information that shows you’re low risk, so you’re more likely to appeal to lenders. For example, if your report shows that you always pay your bills on time, you’ll be considered a reliable borrower.

If you have a high credit score, your application is more likely to be accepted. You’re also more likely to be offered the best interest rates and higher credit limits.

Check your eligibility: See what offers you're eligible for with your credit score.

What does it mean if your credit score is low?

A lower credit score means you might be seen as a high risk borrower. For example, if your credit report shows that you’ve defaulted on a previous debt, your credit score is likely to be lower.

If you have a lower score, lenders might offer you credit at a higher interest rate or reject your credit application altogether. But don't worry, there are plenty of steps you can take to improve your score.


Frankie takes the often confusing world of finance and makes it clear and simple, to help you get your money sorted.