Whether you are looking to get a loan or just curious about your credit, checking your credit score is informative, free and easy.
What is a credit score?
A credit score is a number between 300–850 that shows a consumer’s creditworthiness. Banks and lenders will look at your credit score to gauge how likely you are to be responsible with the money they lend you. The higher your credit score the lower risk you are, the better rates will be available to you. A credit score is based on credit history: number of open accounts, total levels of debt, and repayment history, and other factors.
Certainly if you have fallen behind on any bills or debts including credit cards, mobile phone bills, utilities or even loans for bad credit – these are the types of things that will show up or affect your credit score and it is your role to stay on top of this to you can maintain a good score to get access to affordable credit and mortgages.
How can I check my credit score online?
There are a number of sites online that provide free credit check scores and only need a few pieces of simple information. There are a total of 3 credit agencies that will be holding a report on your credit. These are: Equifax, Experian and TransUnion (formerly Callcredit).
If you’re looking to get the full picture on your credit score it is best to check all of these reports around once a year. all three of these agencies will have an effect on your credit score. Here are some links to sites that can check each of the three agencies with a free trial:
-
MSE Credit Club offers access to your Experian credit report for free.
-
Clearscore* can be used to access your Equifax report.
-
Credit Karma will give you access to your TransUnion report.
There is also the one-off statutory report available here via Gov.uk.
What can affect my credit score?
If you find your credit score is lower than you expected there are a few things you could be doing to negatively impact it. Here are a few examples of actions that will negatively affect your credit score.
-
Frequency setting up a new accounts
-
Frequently applying for more credit
-
Missing payments on loans
-
Being close to your credit limit
-
Having limited or no credit experience
-
borrowing more than you can afford
How can I build a good credit score?
If you find your credit score and are less that impressed there are many ways to improve your credit score:
-
Join the electoral roll – The quickest and easiest way to improve your credit score costs nothing, you just need to register on the electoral roll, even if you live at home or in shared accommodation. This is crucial to building your credit history as lenders can use it to confirm your address.
-
Open a bank account – Having a bank account that you manage well shows lenders that you are stable and financially reliable. If your account has an overdraft make sure you don’t stay in it. Ideally you should use no more than 25% and pay it off as quickly as you can.
-
Get a credit card – Getting a credit card can feel scary for those who aren’t confident about their finances, but it can be a great choice for your credit score. Make sure that you always pay it off on time and in full each month. DOn’t let your spending get away from you. This will help you to build a positive credit score and show lenders you can reliably pay off debt.
-
Manage your household bills well – Keeping up to date on your utility accounts, like your water, electricity and gas, can help you to build a positive credit history. This is another way that lenders can see that you are responsible with your money. Even just paying your rent on time can improve your score.