Friday 16th September 2022

What's it all about?

This article's designed to help you:

  • Understand what a credit score is, and why it matters.
  • Protect and preserve your credit score
  • Sort the solid facts from the many myths about credit scores

So, what do we actually mean when we talk about the importance of credit scores? Well, for one thing, we're talking about putting a hard number on your financial reputation. If you need to borrow money from a business, bank or other other organisation they'll want to know whether or not you're a safe bet to put money on. Credit scores in the UK have been going up in recent years. Back in 2021, the average score was 797— up a full 21 points from 2019. What do these scores actually mean, though? The answer to that pretty much depends on who you're asking. Different lenders can have different ideas of what a "good" credit score looks like, and different credit referencing agencies can have different ranking systems. Experian, for instance, considers a rating of 961-999 to be "excellent". Meanwhile, the scoring system used at Equifax will class you as excellent with a score of 466-700. Does that mean Equifax has lower standards? Not at all—it's just that they use a different scale to assign their scores.