How to check your credit score

What is a credit score?

A credit score is a number that tells lenders the risk you present to them based on how you manage your finances.

Every time you use credit – applying for a new loan, repaying a credit card, even having a mobile phone contract – numbers are added or taken away from your credit score.

From this information, and from other publicly available places like the electoral roll, a credit score is created for you.

The higher the score the more likely you will be accepted for credit and the lower the cost of borrowing.

Why would I check my credit rating?

When you check your credit rating with the three main credit score providers – Experian, Equifax and TransUnion – you will get an idea of the likelihood of you being accepted for credit, how much you might be able to borrow, and what price you’ll pay for it.

If you have a good credit rating, you will be more likely to be accepted for credit and will get the best deals available. If you have a poor score, you may be rejected for credit or you may be charged a higher interest rate than someone with a better credit score.

It’s worth checking your credit report to spot missing or incorrect information. You can ask the credit rating agency to correct any errors by raising a dispute.

By checking your credit rating, you can make sure all the financial products listed in your name are correct and they are all accounts that you have taken out.

Credit score providers

There are three main credit score providers in the UK, which means you have three different credit scores. Different lenders use one or more scores.

The credit reference agencies (CRAs) are Experian, Equifax and TransUnion. Each agency has its own methods for calculating credit scores.

Credit rating agencies

The three main credit rating agencies, Experian, Equifax and TransUnion, use the following credit score ranges:

Alternative credit score providers

Many alternative credit score providers offer additional benefits on top of your credit score.

Third-party provider Clearscore uses data from Equifax and offers weekly updates on your credit report, for example.

Credit Karma uses TransUnion data and sends personalised tips to help you boost you credit score.

Checking your credit score: the process

The process for checking your credit score takes a few simple steps.

How do I find out my credit rating?

To find your credit rating, you’ll need to sign up on the credit reference agencies’ websites, phone app or choose an alternative provider’s app or website.

All of the three main agencies have a free credit rating check service where you can see your credit score.

This is known as a ‘statutory credit report’ and it’s a one-off report where you will be shown the number of your credit score. You can apply for these online or by post.

You can also sign up for a free service with a credit reference agency, where you can see a basic view of your credit score, which is updated monthly.

You will be able to see extra information such as your eligibility. This shows you how likely you are to be accepted for credit or not. You may also be shown offers for financial products.

There is also the option of a more detailed service to check your credit history, which you’ll have to pay for, usually around £14 per month. The paid-for options will give you a real-time view of your credit record, and there will be extra perks, such as tips to boost your credit score, credit fraud protection or daily alerts if something changes on your record.

Be careful that you do not accidently sign up to receive paid service. Some require you to opt out of that.

What personal information do I need to provide?

The basic personal information you’ll need to provide so the credit agency can check you are who you say you are includes:

• Your full, legal name
• Your address history for the past 6 years
• Your job
• Your salary

You will also need to tick a box to say if you are on the electoral roll or not. This helps the agencies to verify your name and address, and to reduce the risk of fraud or someone else pretending to be you.

Set up security measures

You will be asked to set up an account when you check your credit score, and you’ll need to enter an email address and password.

Access your credit score

When you’ve set up an account, you will be able to access your credit score.

This will change depending on which company you’re using to look at your credit score but you’ll be shown a figure and also be told what this means.

You will be able to access your credit score at any time, but for most free versions the score will be updated monthly.

Verify your identity

During the sign-up process you will need to verify your identify and jump though a few other security hoops.

This is because as it’s such an important financial record it’s important it is only accessed by the correct person.

You should only need to enter your password whenever you check it after this.

Review your credit score

It’s worth doing a thorough review of your credit profile, including things like if your full name is correctly spelt and if postcodes in past addresses are right.

If you spot something that isn’t correct, it’s important to contact the credit reference agency, or the financial service company making the mistake, and put it right.

You can ask to change the details so they are correct, or you may need to contact your own bank, or the financial institution where you have an account, to check it has the right details for you.

Monitoring your credit score

It is worth monitoring your credit score every month. Credit scores change every time your financial situation changes – for example, if you apply for a new credit card or loan.

Regular credit rating checks tell you how likely you are to get the best credit deals available.

Checking at least every few months also enables you to ensure everything is correct and means you’ll spot if any credit applications are made without you knowing about it, which could be fraudulent.

Set up credit score alerts

Most websites and apps allow you to set up credit score alerts for free either to your mobile or to your email address.

These will alert you when your credit score changes and when new credit applications are made in your name.

Review credit reports for discrepancies

Sometimes credit reports contain errors so a regular review of your credit report will help you spot any discrepancies and keep your credit score healthy.

When making a credit rating check, if you spot something that doesn’t look right, such as a credit card application you did not make, contact the credit reference agency as soon as possible and let it know so the problem can be sorted.

It may be the case that a mistake has been made, which can be changed, but if fraud has been carried out and someone has taken out credit in your name, you’ll need to alert your bank and other financial providers. You may need to report a crime.

How to challenge an error on your report

If you spot an error on your credit report you should challenge it as soon as possible:

1. Contact the credit reference agency – it could be a mistake, in which case they can remove the error.
2. If a credit lender has added a default by accident, you will need to contact it and ask for it to be removed.
3. If the financial service provider fails to correct your record within one month of you providing evidence, you can complain to the Information Commissioners Office.

How can I improve my credit score?

There are lots of ways to improve a credit score. There are no quick fixes, so think of it more as a steady credit improvement timeline. Here are a few things that can help to boost your score:

There are credit repair companies offering paid-for services promising to improve your credit score, but you shouldn’t have to pay for this.

If you are struggling financially, you can also find advice and help from organisations such as the Money Advice Service, now accessed via the government’s Money Helper website, or debt charity StepChange.

Credit score FAQs

How is my credit score calculated?

Credit scores are calculated by looking at a range of factors, which include:

• whether you’re on the electoral roll
• how many credit applications you’ve made in the past year
• If you have missed any payments for existing borrowing.
• If you have a defaults registered on your credit file.

Credit reference agencies look at this data from the past six years. This detailed credit report is summarised as your credit score.

What is considered a good credit score?

Each credit reference agency has a different range for what is considered a good score. With Experian it’s between 881 and 960, with Equifax it’s between 531 and 670 and with TransUnion it’s between 604 and 627.

What could negatively impact my credit score?

Anything that shows you as someone who is not managing their money properly can negatively impact a credit score. This could include:

• Being in a debt management plan
• Having a County Court Judgment (CCJ) registered
• Being included on the Individual Insolvency Register.

There are also other things to watch out for, including:

• If mistakes have been made in names or addresses
• If you have been the victim of identity theft or fraud.

How often should I check my credit history?

You can check your credit history at any point, but Experian recommends at least once a year as a minimum, and between three and six months before making a credit application.

Is it free to check my credit score?

It is free to check your credit score, you will be able to see a basic view of it and be shown the number given to you by a credit reference agency.

Is it worth paying to get my credit score?

Paying for your credit score will give you a much fuller picture of your financial history and your credit record. There are also added benefits including daily updates to your credit score and fraud alerts.

If you’re unsure if it’s worth paying, most companies offer a free trial period where you can access the paid-for service, but remember to cancel it on time if you don’t want to pay.

What’s the difference between soft and hard credit checks?

Hard credit checks are marks that are left on your credit report for up to two years. They usually count against you for 12 months. They are carried out when you apply for credit, and you will be told in advance if a hard credit search will be carried out.

Soft searches are not permanent and will not stay on your credit report.

Soft searches are usually used by eligibility checkers. These checkers show you in advance whether you are likely to be accepted for credit, without impacting your credit score.

Can I still get a loan with a bad credit score?

There are loans and other forms of credit available to those who have bad credit scores. However, these will be more expensive than loans for people with good or excellent credit scores.

Summary: how to check your credit score

You can check your credit score with each of the credit agencies online or using an app. It’s free to check your credit score, and it’s a vital tool to keep track of your finances. You can check it for free and looking at it will never harm your credit score.

Whatever score you have, it’s also important to remember that it can change and there are lots of practical things you can do to improve it.

While it won’t change overnight, starting to make small improvements to the way you use credit can improve your score, which will give you more access to credit and at cheaper rates.