Your Credit Score
Thinking about applying for credit? Check Your Credit Score for free, with no impact on your credit file.
What is a ‘bad’ credit score?
If your credit score is on the low side, it could be harder to get credit when you need it.
What causes a bad credit score?
Credit reference agencies collect information about you from public records, lenders and other service providers. Things that can impact your credit score are:
Taking control of your finances
If you find it difficult to manage your budget and borrowing, that could be a barrier to you improving your credit score in future, so it might help to check out our tips and tools.
What counts as a ‘bad’ credit score?
The scale used by each credit reference agency varies, but as a general rule, the higher your credit score is, the better your chances are of being accepted when you apply for credit.
Having a low score doesn’t always mean an application won’t be accepted – lenders and service providers also consider other factors, like affordability and any past account history – you might just be offered higher interest rates, and a more limited amount of credit.
Below are examples from the credit reference agencies Halifax work with:
Experian
|
Excellent |
Very good |
Good |
Poor |
Very poor |
|---|---|---|---|---|
Excellent961 - 999 |
Very good881 - 960 |
Good721 - 880 |
Poor561 - 720 |
Very poor0 - 560 |
Equifax
|
Excellent |
Very good |
Good |
Poor |
Very poor |
|---|---|---|---|---|
Excellent811 - 1000 |
Very good671 - 810 |
Good531 - 670 |
Poor439 - 530 |
Very poor0 - 438 |
TransUnion
|
Excellent |
Good |
Ok |
Needs some work |
Needs work |
|---|---|---|---|---|
Excellent628 - 710 |
Good604 - 627 |
Ok586 - 603 |
Needs some work551 - 585 |
Needs work0 - 550 |
How to improve a bad credit score
It’ll take time, but there are a number of things you can do which might improve your credit score:
- Paying bills on time – including credit card, utility and other household bills.
- Managing accounts well – stay below your credit card limits and try to reduce debit balances whenever possible.
- Limiting new applications – whether or not you’re accepted, ‘hard’ credit searches could impact your credit score, especially if you make a number of full applications in a short period of time.
- Registering to vote – being on the electoral roll is one way that your identity and home address can be confirmed, which could help to improve your credit score.
More on improving your credit score
A summary on bad credit scores
A low credit score could make it harder to get credit, or limit your borrowing options.
- Lots of factors can contribute to a low credit score, including little or no credit history, missed payments, past financial difficulties, and even moving home regularly.
- Credit reference agencies collect information from public records, lenders and service providers, helping them to set your score. Each agency has their own measurement scale.
- Lenders do their own scoring when you apply for credit, including information from your credit record, as well as factors like affordability and past account history.
- You might be able to build your score in a number of ways, from making payments on time and managing accounts well, to limiting new credit applications and registering to vote.
- The information held by each credit reference agency can differ, so it might be a good idea to check your credit scores and reports with TransUnion, Experian and Equifax.