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What Does Your Credit Score Mean?

Bad Credit Loans

Secured Loans > What Does Your Credit Score Mean?

What Does Your Credit Score Mean?

If you’ve recently been refused a loan, then you’ll need to check your credit score to find out why. However, if you’re not sure what your credit score range means and whether your credit history is looking appealing or not to lenders, then you may not be able to rebuild your file before applying for another loan or other borrowing option.

Take a look at our guide on credit rating scales to determine what your credit score range means.

Credit Score Explained

There are three main credit rating agencies in the UK, known as TransUnion, Experian and Equifax. These credit-rating agencies are sent information from lenders and establish a record of your credit history, so you’ll likely have more than one credit score. This is the numerical value used by potential lenders and companies to decide how risky it is to lend to you, and if they’ll be able to approve your application.

However, each credit rating agency has its own measure of what a good credit score is, and the score can also differ depending on the amount of information they have gathered. Before applying for a loan, you may wish to consider requesting your credit file from all three agencies to check your file information and view your score.

At TransUnion, your credit rating can range from 1 to 5, with 4 and above considered as a good credit score. In terms of their credit score, 0 to 550 is considered very poor, and the equivalent of credit rating 1, 551 to 565 is a poor credit rating of 2 and 566 to 603 is a fair credit rating of 3. At the higher end of the range, 604 to 627 is a good score equivalent to a credit rating of 4, and a credit score of 628 to 710 is an excellent credit rating of 5.

At Experian, your credit score is measured out of 999, with anything over 881 considered as a good credit score. A score of 0 to 560 is considered very poor, 561 to 720 is poor, 721 to 880 is a fair credit score, 881 to 960 is good and from 961 to 999 is excellent.

At Equifax, your credit score is out of 700, with a score of 420 and over considered as good. 0 to 279 is a very poor credit score, 280 to 379 is poor, 380 to 419 is fair, 420 to 465 is a good credit score, and 466 to 700 is an excellent credit rating.

The benefits of a Good Credit Score

There are many benefits to maintaining a good credit score. Healthy or good credit history can help you to secure more competitive rates of interest from lenders, ensure you’re able to borrow in the future and may allow you to secure a larger loan amount if required.

You may still be accepted for credit with a poorer credit score but may need to pay higher rates of interest due to being considered more of a risk by lenders.

Can I borrow money with a bad credit score?

At Evolution Money, we understand how frustrating applying for a loan or other borrowing alternatives can be, especially when your credit score is considered to be poor. This can make borrowing money extremely difficult. However, we like to say ‘yes’ to our customers and have developed a secured loan specifically for customers with a poor credit score.

When approving loan applications, we look at more than just your credit score and take your individual circumstances into account. If a bad credit loan seems like the solution, contact Evolution Money today on 0161 814 9158.

To apply for one of our secured loans, you must be aged between 21 or over, live in the UK, own your home and pass our affordability checks. If we feel you’re able to keep up with the repayments, then you could borrow any amount between £5,000 and £50,000.

Join hundreds of our satisfied customers and use your bad credit loan to consolidate debts, travel the world, finance your new car or carry out some home improvements. With the support of Evolution Money, your financial goals could soon be a reality even if you’ve previously been refused a loan elsewhere.

With our straightforward application process, it’s never been easier to apply for a secured loan, regardless of your credit score. Simply enter how much you want to borrow and for how long, our lending terms range from one year to 20 years, and we’ll soon be back in touch with a no-obligation quote that won’t affect your credit score.

Please note that failure to make the monthly repayments when due can result in more severe financial issues in the future as well as the potential repossession of your property.

Warning: Late payment can cause you serious money problems. For help, go to moneyhelper.org.uk
Representative 28.96% APRC (Variable) - For a typical loan of £20,950 over 85 months with a variable interest rate of 23.00% per annum, your monthly repayments would be £537.44. Including a Product Fee of £2,095.00 (10% of the loan amount) and a Lending Fee of £714.00, the total amount repayable is £45,682.15. Annual Interest Rates ranging from 11.7% to 46.5% (variable). Maximum 50.00% APRC. The loan must be paid back by your 70th birthday. Read more.

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.
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