A good credit score can be important when applying for a loan, new credit card or mortgage. It may make you more attractive to lenders and could open the door to a wider range of products. But what exactly is a good credit score?
In this guide, we’ll cover everything you need to know about what constitutes a good credit score, so you can feel more informed before applying for credit.
You’ll find out:
- What a credit score is
- Why your credit score is important
- What is considered a ‘good’ credit score
- How to get a good credit score
- Common misconceptions about credit scores
Need more information about credit scores, loans or managing your money? Take a look at our Help & Advice page.
What is a credit score?
Your credit score is a numerical representation of how well you manage credit. In the UK, this can be from 0 up 1250, depending on the credit reference agency. Your score is calculated by three main credit reference agencies (CRAs): Experian, Equifax and TransUnion.
Each CRA has its own scoring system. While their ranges differ, each uses your credit history to build your score. They consider factors such as:
- The reliability of your repayments
- The types of credit you have taken out
- How long you have had your credit accounts for
- How much of your available credit you use
- The number of credit applications you have made recently
Why is your credit score important?
Lenders use your credit score to decide whether to offer you credit, how much to offer and at what interest rate. This is because the score predicts your future behaviours based on past borrowing.
A higher score could give you access to more favourable interest rates and terms, which means you could repay less over time. If you have a lower score, this may result in higher interest rates or even denial of credit.
One of the main reasons lenders look at your credit score is when they’re considering you for a secured loan or another form of credit. However, there are other areas where it could have an influence.
- Housing: If you’re planning to rent a property, the landlord may check your credit score to gauge if you’re likely to be a dependable tenant. Likewise, if you’re taking out a mortgage and your credit score is poor, you could be rejected.
- Employment: Some employers conduct credit checks, especially for roles involving financial responsibility. While they can’t see your exact score, they can see a version of your credit report. This also includes any County Court Judgements (CCJs).
- Utilities and services: Providers may use your credit score to determine deposit requirements or payment terms.
Knowing what your credit score is can give you the information you need to make important financial decisions.
What is a good credit score?
What is classed as a good credit score for borrowers in 2025 depends on the credit reference agency you choose to go with. The score ranges have changed over the years, but currently, these agencies set out their scores like this:
- Experian: Scores range from 0 to 999. A good score is between 881 and 960.
- Equifax: Scores range from 0 to 1,000. A good score is between 531 and 670.
- TransUnion: Scores range from 0 to 710. A good score is between 604 and 627.
You can get a free credit report from each of these CRAs. It’s worth getting a report from each so you can check your score and ensure the details in each report are accurate and up to date. Even small details like a missed change of address can potentially affect your credit report and score, so take the time to look through these.
Does my credit score need to be ‘excellent’?
A good credit score is usually enough to access a wide range of financial products. This means reaching the ‘excellent’ category isn’t essential for most people.
That said, higher score bands might give you a bit more flexibility. Small changes, like closing an unused credit card, could cause a slight dip in your score. This may be the case even if they make sense for your finances overall.
Having a higher score to begin with may act as a cushion, which could help you stay within a strong range even if your score fluctuates. Ultimately, lenders look at your overall credit behaviour, not just the number itself. So, maintaining consistent, responsible habits is generally what matters most.
How can I get a good credit score?
While each lender scores you differently, there are steps you can take to try and help your credit score and reduce the likelihood of being rejected for credit.
- Check your credit report: Review your credit reports for errors and correct any inaccuracies. Ideally, do this once a year or before you apply for credit.
- Pay bills on time: Timely payments show reliability. Missed payments could cause problems that last for years. If you have a loan, for example, make sure you meet the repayments on schedule and know the timescale you have in place.
- Manage credit utilisation: Keep your credit card balances low relative to your limits. Try to keep credit use below 30% of your available balance.
- Limit new credit applications: Frequent applications may indicate to lenders that you’re having financial difficulties. Apply for new credit only when necessary.
- Check your credit file after rejection: If you’ve been turned down, make sure you’ve read your report to see if there are errors you can rectify.
Common misconceptions about credit scores
There are plenty of myths around credit scores. This may make it harder to know what really impacts your rating. Here are some of the most common misconceptions:
- Checking your credit score will lower it: This is a common worry, but checking your own credit report is considered a ‘soft search’ and has no impact on your score. It’s generally considered a good habit to review your report regularly.
- You only have one credit score: In reality, each CRA calculates your score differently. This means your score might vary depending on whether you check with Experian, Equifax or TransUnion.
- Closing old accounts will always improve your score: While it might seem like a good idea to tidy up unused accounts, closing long standing credit may sometimes reduce your score. That’s because lenders value a longer credit history.
- Being debt free guarantees a higher score: This is not necessarily true. Having little or no credit history might make it harder for lenders to assess you. Responsible use of credit, rather than avoiding it completely, is what may help build your score.
- A high income means a high credit score: Your income isn’t directly included in your credit score. Lenders may consider how much you earn during applications, but your score is based on how you manage credit.
Understanding what really affects your credit score may help you make more informed financial decisions and avoid unnecessary setbacks.
Could you improve your credit score with a loan from Evolution Money?
Building a good credit score starts with consistent, manageable financial habits (especially keeping up with repayments). If you’re juggling multiple commitments, bringing them together into one monthly payment could help you stay on track.
At Evolution Money, we may be able to help you consolidate your existing borrowing into a single debt consolidation loan, with amounts available from £5,000 to £105,000.
To get started, you can check your eligibility today. If you’re a UK homeowner aged between 21 and 70, we may be able to support you.
All loans are subject to status and eligibility. Terms and conditions apply. Not all applicants will be accepted.
If you are thinking about bringing debts together, remember that doing so may increase how much you’ll repay and how long it takes.
Don’t rush into securing a loan against your home. Falling behind on mortgage or secured loan repayments may put your home at risk of repossession.
Representative 17.46% APRC (Variable)
For a typical loan of £23,120 over 120 months with a variable interest rate of 17.46% per annum, your monthly repayments would be £442.07. This includes a Product Fee of £2,312.00 (10% of the loan amount) and a Lending Fee* of £763.00, bringing the total repayable amount to £53,047.80. Annual Interest Rates range between 8.6% to 27.87% (variable). Maximum 50.00% APRC. *Lending Fee varies by country: England & Wales £763, Scotland £1,051, Northern Ireland: £1,736.
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other loan secured against it. If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.
