What affects your credit score?
A lot of things could impact your credit score, but they’re not always things you’d expect.
There’s no single credit score
There are three main credit reference agencies in the UK, each collecting information about you from public records, lenders and other service providers, before generating a ‘credit score’.
Each agency does this independently, so the details they hold and the score they generate can vary.
The credit reference agencies used by Halifax include TransUnion, Experian and Equifax.
In addition, lenders and other service providers do their own scoring when you apply for credit, looking at information from your credit record, as well as other factors like affordability and any past account history.
What are the main things that can affect your credit score?
The truth is, lots of factors can impact the credit score generated by each credit reference agency, but the way you manage your financial accounts is a big one.
You might not have thought about
Below are a some of the other things which could impact your credit score.
What won’t affect your credit score?
You might also be surprised about the things which don’t impact your credit score, although it’s worth remembering lenders might consider some of them from an affordability perspective.
A summary on what affects your credit score
Credit reference agencies collect information about you and your financial past, generating a score.
- The information held by each credit reference agency can differ, so it might be a good idea to check your credit scores with TransUnion, Experian and Equifax.
- Things like your repayment history, the amount you’ve already borrowed and even moving house, can all affect your credit score.
- Missing payments can do a lot of damage, whether it’s for a credit account, student loan or even a utility bill.
- Some things don’t impact your score, including your income and savings, or spending your own money with a debit card.