Here, we look at what is seen to be a good credit score, why it matters and how credit scores are calculated.
|Experian||961 to 999||881 to 960||721 to 880|
|Equifax||466 to 700||420 to 465||380 to 419|
|TransUnion||628 to 710||604 to 627||566 to 603|
|Excellent||961 to 999||961 to 999|
|Good||881 to 960||881 to 960|
|Fair||721 to 880||721 to 880|
|Excellent||466 to 700||466 to 700|
|Good||420 to 465||420 to 465|
|Fair||380 to 419||380 to 419|
|Excellent||628 to 710||628 to 710|
|Good||604 to 627||604 to 627|
|Fair||566 to 603||566 to 603|
If you apply to borrow money, lenders will look at your credit score before deciding whether to accept your application. It may also help them decide how much to offer you.
If you have a poor credit score, you may find you're offered a higher interest rate. It can also affect other types of credit agreements, such as mobile phone plans.
For example, if you’ve always paid your bills on time, this would have had a positive impact on your score. But a history of missed or late payments would have had a negative impact.
If you’ve never borrowed money before, it's difficult for lenders to assess the risk of lending to you and your credit score will reflect that.