What Is a Credit Score? How It Works and Who Sets It

In the UK there are four agencies that compile information on how you manage credit: Experian, Equifax, TransUnion and Crediva. Each agency has its own credit report for you, and the information in each might be different.

The Information Commission (the ICO until 30 September 2026) says the three main consumer agencies are Equifax, Experian and TransUnion. These agencies are licensed by the Financial Conduct Authority.

By law, all credit reference agencies have to give you a copy of your statutory credit report for free. Our guide to your credit report explains how to get it.

The agencies publish their own score scales:

• Experian: its score bands go up to 1,250, and its Excellent band is 1,121 to 1,250
• Equifax: it describes its credit score as a score out of 1,000
• TransUnion: its old Excellent band was 628 to 710, its new score range is 0 to 999, and the new score starts to appear from September 2026, though not all of its partner providers are changing at the same time

Equifax says scores can be rated on different scales, so you might get 700 on one scale and 500 on another, even if the information provided is the same. TransUnion says each agency works independently and uses its own methods to calculate scores, so your score can vary depending on which agency you check.

When you apply to a bank or other lender, it will usually run a credit check so it can view your credit history and work out how risky you are to lend to. Some lenders also use credit scoring to help them decide whether you are likely to repay:

• They may give points to some of the information on your application form and to some of the information on your credit reference file
• Each lender has its own credit scoring system and decides how many points you need to reach its own pass-mark
• Lenders do not have to give you details of how their credit scoring works
• They also look at other things, including whether they think you can afford to take on another credit commitment

If a lender refuses you credit:

• If a lender uses credit scoring and refuses you credit, you can ask it to explain the main reason why
• Even if a lender reviews its decision, it may still turn you down
• If a lender decides not to go ahead with a regulated credit agreement because of information from a credit reference agency, it must tell you so and give you the agency's name, address and telephone number

Your score is based on the information in your credit report. These are the parts of it that the official guidance points to:

• Payment history: paying on time and as agreed helps to show lenders you have been reliable in the past
• Missed or late payments and defaults: these stay on your credit report for up to six years
• Recent information: the most recent information on your report has the most impact, because lenders are interested in your current situation
• Electoral register: being on the electoral register helps to confirm your address, and registering to vote is an easy way to improve your credit score
• Applications: a hard search happens when you apply for credit and affects your credit score, and lots of hard searches in a short space of time can make lenders think you rely too much on credit
• Public records: County Court Judgments (decrees in Scotland), bankruptcies, Debt Relief Orders and individual voluntary arrangements can stay on your report for up to six years or longer in some circumstances
• Financial links: your report lists people who are financially linked to you, such as a partner you took out a joint loan with, and MoneyHelper says to be wary of joint accounts if the other person has a poor credit history

• Checking your own score or report does not harm it: it is a soft search that only you and the credit reference agency can see
• Your credit report does not carry your salary, religion or any criminal record
• Previous occupants of your address do not affect your credit score, and you should not be linked to anyone just because you live at the same address
• The Information Commission says credit scores disregard your sex, religion, race, political beliefs, sexuality or criminal record
• Some credit repair firms claim they can do things that legally they cannot, and MoneyHelper says never to use them, because you can see your report and improve your credit rating yourself for free
• Accurate negative information usually stays on your credit report for six years and cannot be removed sooner

Check what is on your credit report, and follow our guide on improving your credit score. For help with the debt itself, read our dealing with debt guide, or browse all of our debt guides.