How is your credit score calculated?
Key takeaways
Various factors influence credit scores, and credit agencies use a combination of publicly available information and data from lenders to determine your score
Your score can be influenced by those you’re financially linked to (e.g., spouse or joint account holders)
Changes in your credit (new loans, credit cards, missed payments) take about four to six weeks to reflect on your file and affect your score
Remember that credit scores are dynamic and can change based on your financial behaviour, as registered on your credit report
Having a decent credit score is important because it helps determine whether or not you’ll be accepted for a mortgage, personal loan, credit card, or even a mobile phone contract.
If you do get approved, your score may also impact how much credit you could receive, the interest rate you are offered, and how long the deal runs.
How is my credit score calculated?
Credit reference agencies collate details about your financial history from the past six years to work out your score.
This will include your name, current address and previous addresses, and whether or not you’re registered on the electoral roll.
It will also include data from lenders you’ve had credit agreements with, and whether you have any missed or late payments.
In addition, agencies will hold information from the courts, such as whether you’ve had a default, County Court Judgement (CCJ), Individual Voluntary Arrangement (IVA), or bankruptcy.
Further, they will have details of anyone you’ve been ‘financially associated’ with, via products such as a joint account or joint mortgage.
Who are the UK’s main credit reference agencies?
The UK’s three main credit reference agencies are Experian, TransUnion and Equifax. MoneySuperMarket uses data from TransUnion. Each uses its own scoring system, so your score can vary between agencies and the numbers cannot be directly compared.
What is a good credit score?
Experian: Experian’s credit score now ranges from 0–1,250. A score of 861–1,000 is classed as good, while 1,001–1,120 is very good and 1,121–1,250 is excellent.
TransUnion: TransUnion’s new credit score ranges from 0–999. A score of 653–785 is classed as good, while 786–999 is excellent. The new scoring system is being introduced from September 2026, so some consumers may still see the previous 0–710 scale through their provider.
Equifax: Equifax’s credit score ranges from 0–1,000. A score of 531–670 is classed as good, while 671–810 is very good and 811–1,000 is excellent.
Our dedicated guide gives more information on what is considered a good credit score.
Why do credit agencies show different scores?
Credit reference agencies use different scoring systems because each has developed its own scoring model to assess creditworthiness.
But even if the numbers were aligned, your score could differ between agencies. This is because:
They may hold different information about you, depending on which lenders report to them
They place different weight on factors such as your payment history, credit utilisation and recent applications.
This means the same information can affect your score differently across Experian, TransUnion and Equifax.
How do credit agencies collect information for my credit score?
Credit agencies collect information from public records and organisations you have financial dealings with.They may use:
The electoral register – to help verify your name and address
Court records – including County Court Judgments (CCJs)
Bankruptcies and insolvencies – including IVAs and debt relief orders
Information from lenders and other financial providers – including details of your accounts, balances and repayment history
Information provided during credit applications – such as personal and employment details
Search records – details of organisations that have searched your credit report, including when and possibly why the search took place
How often is my credit score updated?
Your credit score can change whenever new information is added to your credit report. Lenders typically report updates to credit reference agencies once a month, so it can take several weeks for changes such as a new credit card, loan or missed payment to appear on your report and affect your score.
With MoneySuperMarket’s Credit Score feature, you can access your TransUnion credit score and report instantly. Your information is refreshed each time you log in, up to once a day, so you can keep track of changes to your credit file.
Does everyone’s credit score start from zero?
No, your credit score doesn’t necessarily start at zero. If you’re new to using credit, you may simply have a limited or no credit history, meaning there may not yet be enough information for a credit reference agency to calculate a score.
As you start using credit, your credit report will build up a record of how you manage it. This can then give agencies more information to calculate and update your score.
How to improve your credit score
Some of the best ways to improve your credit score include:
Register on the electoral roll: This helps provide proof of address and confirms your identity
Pay all your bills on time: Set up direct debits for your council tax, energy bill, phone bill, and so on, and make sure you never miss a payment
Check your credit report: Make sure everything is accurate, correct any errors, and investigate info that doesn’t look right
Don’t use all your available credit: If you have a credit card, for instance, use a lower amount of credit than you have available
Our complete guide to improving your credit score gives you everything you need to know about giving it a boost.
You can also register with Credit Score – a free service from MoneySuperMarket that lets you check your score and your full report whenever you like.
Why should I care about my credit score?
A good credit score will help you secure better interest rates on personal loans, credit cards, car finance deals and more.
It should also mean you get a higher credit limit, so you're able to borrow more than if you had a bad credit rating.
The good news is that you can take steps to improve your credit score over time – see our guide to improving your credit score for some top tips.
What else do lenders check besides my credit score?
Your credit score isn’t a lender’s only consideration before deciding whether to approve an application. Other areas include:
Personal details: Lenders check that information such as your name, address, date of birth and employment details is accurate and consistent with other records. Errors or inconsistencies can cause problems with an application.
Affordability: They look at your income, regular spending and existing financial commitments to assess whether you can afford the repayments.
Account history: Your credit report shows your existing accounts, outstanding debts and repayment history. Lenders may also consider your previous dealings with them.
Existing borrowing: Lenders can consider how much you already owe, including existing loans, credit cards and overdrafts, and whether you have available credit.
Recent applications: Your history of applying for credit can be considered. Multiple applications in a short period may make lenders less willing to lend.
Fraud and identity checks. Lenders may carry out checks to verify your identity and help detect fraudulent applications.
What's the difference between my credit score and an eligibility rating?
Your credit score is a number based on information in your credit report, designed to indicate how you’ve managed credit.
An eligibility rating estimates how likely you are to be accepted for a particular credit product, based on the lender’s criteria and your circumstances.
Eligibility ratings are often shown as a percentage and typically use a soft search, so they don’t affect your credit score.
Other useful guides
Nurture your credit score with MoneySuperMarket’s Credit Score
You can check your score and credit report for free as often as you like with our dedicated Credit Score service.
Not only can you see your current position (MoneySuperMarket partners with credit rating agency TransUnion), but you can also set alerts to notify you if there is any suspicious looking activity on your file – so you can avoid being the victim of fraud.
You’ll also receive regular updates and free tips and advice on how to keep improving your score.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
Reviewer
Alan Cairns
Senior Content Editor
Alan breaks down money, home, and energy topics into plain English to help you save money. Ask him about pound cost averaging or Balkonkraftwerk.
