A credit scale icon.

10 min read

A credit score and a big question mark.

What is Credit Scoring?

In the UK, credit scoring is an analysis performed by financial lenders and banks to determine the creditworthiness of an individual. It may sound complicated, but essentially it is a number and the higher your credit score, the better your ability to successfully apply for a loan, be accepted for a credit card, or access other borrowing options.

A credit score and a big question mark.

What does your credit score mean?

Your credit score, also known as your credit rating, reflects your credit history and indicates the level of risk associated with lending to you. So, if you’ve borrowed money over the past six years and have made the agreed payments on time, you’ll likely have a good credit score suggesting to the lender that you are in a position to apply for a loan and manage future debt.

As well as determining whether they would lend to you, your credit score is also used by financial lenders to decide the amount you’ll be able to borrow and the rate of interest charged when making your monthly repayments.

A good credit score can improve your ability to borrow a large amount of money at a more competitive interest rate. That’s why it’s important to understand credit scoring and what your credit score means for your financial health and future, and how to improve it.

It’s also important to note that if you haven't borrowed money previously or established any credit history, you may need to build a credit rating and proof of debt management before applying for a loan.

What is a good credit score?

A good credit score varies depending on the financial lender and their criteria for application. The three main credit reference agencies (CRAs) hold information on consumer’s credit history in credit reports but score consumers differently:

Equifax

Credit score from 300 to 700. Any credit score over 420 is considered good.

Experian

Credit score from 0 to 999. Any credit score over 881 is considered good.

TransUnion

Credit score from 0 to 710. Any credit score over 604 is considered good.

The three CRAs do not hold identical information about consumers although their data is obtained from public sources such as the electoral register, bankruptcy statements and County Court Judgements. This is because financial lenders may only supply data to one or two of the credit reference agencies rather than all three. It’s therefore likely that you actually have three credit scores rather than just one.

Your credit file should include all your basic personal information, any previous credit applications, any joint loans or shared bank accounts and how much money you currently owe to lenders as well as a record of any late payments.

To check your credit score, request your credit file for free from the above CRAs. You can receive your credit file either online or as a written copy through the Information Commissioners' Office. There are also online partners that allow you to view your basic credit score and report for free, including ClearScore and Credit Karma.

How do I improve my credit score?

An image of a Newtons Cradle device and a scale.

There isn’t a quick fix for improving your credit score but regular credit file checks can help to ensure there are no mistakes or signs of fraudulent activity in your personal or financial information that could affect your credit score.

One of the simplest ways of improving your credit score is to ensure that you are registered on the electoral roll. However, the most efficient way to improve your credit score is to demonstrate financial stability and make consistent, regular payments on time and in full. Remember to close any old accounts you no longer owe on before applying for a loan or other borrowing options and cut all financial links with ex-partners by requesting a ‘notice of disassociation’ be added to your credit file by the relevant CRA.

For more information on credit scoring, take a look at our informative Credit Knowledge Hub to discover if it’s worth viewing your credit report? Do debt consolidation loans help your credit? And the Consolidation Loan Misconception “You need a good credit score to get a Consolidation Loan’.

Consolidate your debt in 3 easy steps

Are you worried about bad credit and debt? You’re not alone, there are currently up to 8 million people in the UK that are unable to pay off debt. At Consolidation Express, we can help you to receive a loan even if you have a bad credit score or have been refused a loan in the past.

Our debt consolidation loans offer you the opportunity to manage and repay your debt while making just one affordable payment from as little as £75 per month. By receiving a debt consolidation loan which covers all of your outstanding debt, you may be able to only pay back one repayment to Consolidation Express each month rather than juggling multiple lenders with different repayment amounts, dates and interest rates.

We’re here to help consumers who are struggling to make ends meet due to debts from multiple creditors. So, whether you need to take control of your personal finances, repay store cards, consolidate credit card debt or repay a payday loan, our debt consolidation loan may be the right borrowing option for you.

Discover how to consolidate your debt in 3 easy steps with Consolidation Express:

An icon of the number 1.

Start your journey with our quick and easy-to-complete online consolidation loan application. It only takes a few minutes! Start now >

An icon of the number 2.

Our debt solution experts will review your loan application.

An icon of the number 3.

If your application is approved, you may receive the money in your account between 2 and 48 hours.

Apply Now

Apply for a UK debt consolidation loan between £5,000 and £75,000

Sue following our 3 steps to consolidate her debts.
An image of a hand pressing an apply button on a mobile phone screen.

What are the benefits of debt consolidation?

When you choose Consolidation Express, you won’t need to worry about any hidden upfront fees or complicated jargon. Our team of friendly and experienced debt consolidation advisors are available to give you the advice and support you need to consolidate your debts and plan for the future. Don’t worry if you’ve struggled to receive a loan in the past due to bad credit because, at Consolidation Express, we consider all credit scores!

Successfully applying for a debt consolidation loan can help to stop calls from creditors, help you to regain financial control, stop relying on others for money and ensure that you have disposable income in your account by keeping better track of your payments.

Our online application takes just minutes and won’t affect your credit score. Take a look at some of these real customer stories to see how we’ve helped real people regain control over their finances and debt. We’re also rated 4.7/5 and have received the Gold Trusted Service Award from Feefo, check out our 5-star reviews!

“The service was great they made sure that they explained everything thoroughly to you and that you understood. There were no delays in getting things done. I can't complain.” Trusted Customer

We’ve supported thousands of real people in taking control of their finances regardless of their credit score. To find out more about debt consolidation loans and bad credit loans available from Consolidation Express, contact our dedicated team of debt solution experts today by filling in our quick online application form.

Apply Now An image of a hand pressing an apply button on a mobile phone screen.
An image of a hand pressing an apply button on a mobile phone screen.

Further reading