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A Credit Score Guide

Most of us have an idea about what a credit score is and that a good credit score is beneficial when it comes to getting approved for personal finance products, such as credit cards and loans.

However, there is more to credit scores than meets the eye. This guide is to help you have all the facts around what needs to be done to improve your credit score and what the causes can be to damage it.

Getting started

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So, first things first…what is a credit score?

A credit score is a 3-digit numerical value that represents your level of creditworthiness – i.e. how trustworthy are you when it comes to repaying any credit that you have borrowed from lenders.

Your credit score is derived using a mathematical algorithm and can range from 0 to 999. Depending on which of the UK’s three major credit reference agencies your credit score is generated from, a ‘poor’ credit score is anything below 620; a ‘fair’ score is anything from 621 – 680; a ‘good’ score is 681 – 720 and anything above 720 is considered ‘excellent’.

Every adult in the UK has a credit score and lenders use this as an index to help them decide if they are prepared to offer you credit, and if they are, then at what interest rates.


Mortgages

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Today, first-time buyers have never been more up against it when trying to secure their first home and mortgage. Equally, with house prices soaring, even those already on the ladder can struggle to land a favourable mortgage when attempting a move to a more expensive property. Did you know that in each of the above instances your credit score can prove the difference, both in terms of getting approved or rejected for a mortgage or in gaining access to better lending terms?

Discover more with our expert guide called Credit Scores and Mortgages


Cars

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Your credit score can also affect access to car finance deals, which makes it vital for you to know your credit score before you even begin the process of buying a car on finance.

Find out more on this in our expert guide called Credit Scores and Cars


Credit cards

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There are certain types of credit card that can help rebuild your credit score, as well as gain access to better lending terms and benefits in the long run.

Also, you can take advantage of 0% credit cards to escape from existing credit card debt, but you need to be wary of whether this can lower your credit score.

Read our expert guide called Credit Cards Explained to find out all about this.


Student finance

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What with the advent of credit cards tailored to meet the needs and requirements of students and graduates, it is important for you to know what taking out credit means, how to manage existing debt and how to boost or rebuild your credit score.

Read our expert guide called Credit Cards and Students to learn more.

What's Your Credit Score?

If you would like to know what your credit score is and the very best ways on how to improve your score, simply click the button below now to get started.

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* After your 30 day free trial, a monthly membership fee of £14.99 applies. You can contact us to cancel within your free trial and no fees will be payable. If you cancel after your free trial, no further monthly fees will be payable from the date of cancellation. However, no monthly fees already paid will be refundable. Full membership benefits are subject to credit reference agency validation of your identity.

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