What's a good credit score? (UK)
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- เผยแพร่เมื่อ 30 ก.ย. 2024
- Confused by what your credit score number actually means? It's hard to know if it is excellent, good, fair or poor.
And with three or four different scores available you can't compare one with another, or work out when you've managed to get a perfect credit rating - especially as they're all placed on ranges between 700 and 1,000.
Even once you've found all your scores and put them in the ratings bands, what does it even mean in terms of your chances of getting credit?
In this video I've explained how the three different credit reference agencies rank each score, and what it means for you.
W A T C H N E X T
How to check your credit score for free
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Credit scores explained
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A B O U T A N D Y
Andy Webb is a money blogger and journalist. He runs the award-winning website Be Clever With Your Cash, hosts the Cash Chats podcast, presented Channel 5’s Shop Smart Save Money and writes every month for Reader's Digest. Andy also founded the community ukmoneybloggers.com.
DISCLAIMER
Content in these videos does not constitute regulated financial advice. Any offers mentioned were correct at the time of filming.
How can your credit score be this high when you are always switching banks?
Has anyone else noticed that your score goes up when you pay for Experian premium service?
I'm sure the top score 999 is a number chosen randomly. I happened to know a cult/religion that likes things up side down. Interesting.
It's a load of bull 🐂 credit score means nothing if you work and have a constant wage coming in then don't worry I had a high score and paid off a loan and car in one week then it dropped by 89 if anything it should have gone up at that point I deleted the app
Same here - I had a score of 639 on KKarma - I have since paid off my mortgage, all my credit cards, and have just one personal loan, and my car finance, never missed a payment on anything ever. Now it's gone down 6 points and it says.......................You are not using enough of your credit facilities, increase your borrowing to improve your score ( in so many words! ) Bloody ridiculous.
@@maxthelab8457 tell me about it lol the system is rigged your score should be over 700 for that
Absolutely
Very misleading. If your credit score dropped after paying off your loans or credit cards there's a few reasons for it but most likely it's because you accrue good credit through something called credit mix. This is where you're able to demonstrate you can manage different credit at one time. After you pay off your debt or credit card this credit type will essentially drop off your account causing a temporary drop in your score. But it's only temporary
@@maxthelab8457 that's correct. One of the things that improves credit scores is by having a good "credit mix". This is where you are managing different credit at one time. When you pay back loans/ mortgage that account is no longer active and you're therefore no longer managing the same "credit mix". The score drop off is only temporary and you want to continue building your score just keep on spending less than 30% of your credit limit and make sure you pay it back each month in full to show good credit management
In my student years I became more familiar with credit scores and I didn't like how much impact they have on your long term debt. For example I needed some urgent money to pay off some college fees so my best option was to take out a credit card. When you apply with a poor credit score you won't get much anyway and the interest will be quite high which makes paying the credit back that much harder and longer to achieve hence keeping you longer in debt and with a poor credit score. There should be more involvement and support from the banks as well when loaning to people with debt.
I am new to credit and was wondering if my late payments to Klarna was affecting my credit score so I checked. It said my credit score was excellent, however, I have never owned a credit card or taken out a loan besides my student loan. I was under the impression that no credit was bad and I would have to build it up with credit cards to get a good score? Or is it normal to start at an excellent score?
I think it the whole system is wrong you should not have a credit score against you until you take out the credit I have a bad score yet I have a great income and in the last 10 years have not had any problems with my finances yet I don’t get the good rat it just a con
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Hello. I recently moved to UK and this thing about Credit score is quite confusing. I don’t need any loan but I am worried about the future so maybe I should start working on my credit score, just in case some day I need it. How can a new UK resident, who has moved from another country, start working on it? I would appreciate if someone gives me some information or tips about it. Thanks a lot!
Hi Javier. Yes it's worth thinking about the ways you can improve your credit score. I'll make a video soon on some ways to do this.
Javier make sure you use your credit and increase your credit limit and use of credit over time.
Hello Javi! How is it going? I'm also slowly building my credit score up 😀 The thing that has helped me the most so far is having a credit card and using it to buy groceries (keeping the credit utilisation low, under 20%, so mainly salt & vinegar crisps) and then pay by direct debit every month. I'm still only on the "fair segment" but getting there. I had a LOQBOX save loan but that didn't help as much so I would stay away. Any tips that have worked for you?
Some of the comments here make me so angry. No one is taught this in schools in the UK and have their lives ruined sinply through lack of knowledge on the subject
@Alex Clever Cash
I was watching “This Morning” the other morning and that Martin Lewis says it’s not worth getting or even starting a Credit Score.🤔 Is it true? Should I still get a credit score?
Hi Sirens, so a credit score is really just an indicator of how good or bad your credit report is - but a credit report is essential if you need to borrow money (mortgage, loans, credit cards) and even to open current accounts or get direct debits on mobile phone or energy bills. Here’s more about credit scores / reports th-cam.com/video/7sc-pesjZ4w/w-d-xo.html
If you want to buy a house one day you will need a good credit score
can you bulid your credit score with American express basic card?
Hi Sam, Yes any credit card where you spend a small amount each month and repay it in full will demonstrate a responsible use of credit.
I too have credit score of 999 in Experian.
I had a 999 score on Experian even when I had a poor score with the other two agencies.
I then managed my scores to all fall within the excellent range, although the Equifax one, easily the least logical of any of them, has since slipped back to good again for no apparent reason given all credit cards are paid off in full every month and I haven't taken on any more credit.
It just proves what utter nonsense they really are, and how they can justify anyone paying for their service is beyond a joke.
@@markpearson8721 pay oh no. i won't pay for this shit. i had good score but still couldn't get a credit card because of equifax score of mine was less. now my score in all 3 are good.
My credit score is ... 404 error
Andy, why can’t the 4 credit brokers have unified scoring if they are all using the FICO model?
My credit score says bad at 680 how i make it fair all my bills paid etc
I've got some tips on this video th-cam.com/video/SzjNCoqazVw/w-d-xo.html&t
My credit with Experian is 974 and sour ClearScore 185 what on earth is causing this drastic difference can anyone help me
666 credit score in uk it’s good or poor
Lol
JAX. ❤.
Hi i was wondering if there any way to check total credit score all in once for free:) 😅😅
Amazing video
please do a video on business credit score, how do we improve that
Appreciate that this is a question on a old video but...would only using £10 on a £50 limit credit card give you the same credit points as using £1000 on a £5000 limit card as the percentages are the same? Only because I'm a newbie and need an entry level credit building card. Thanks
Yes they look at the percentage of available credit that you are using
Best is ZERO. That can be achieved by not owning a credit card. Actually there at least 4 credit reference agencies in the UK but you need none of them.
This is incredibly misleading. First of all, it's not just a credit card that gives you a credit file. If you have a mobile phone contract, pay rent through direct debit, sometimes utility bills through direct debit (depends on the provider) then you will have a credit score. Almost every single adult in this country has a credit score, it's not something you choose to have.
You most certainly need a credit score, credit history if you want to have a mortgage or take out a loan and there are only 3 MAJOR credit reference agencies
wake of prescribing this clasp to gain proficiency with some information about credit....
Ps you have to log in every 3 months
My credit score is 988 is this very good? I can apply for mortgage ?
Not high enough, sorry Raj
@@windowguylol Which score is gonna be high bro? you mean 999 out of 999
@@punjabitvbyrawalrath no higher than that raj
You have bad score… you won’t get mortgage.
@@nik_hithu
you need more education about the credited dear I got mortgage already one month ago 😂😛
Nice
Hi,
I have an bank account that I don't really use and is the oldest account that I have, currently I use another bank. I've seen on credit report that an bank account over 5 years help me on my credit score. And I was thinking to close it, will be a good idea?
No don't close
@@lorea5518 already made this mistake lol
Nice vedio
Good vedio
How come I have an excellent credit score with Experian and fair with transUnion
Nice video
I use to like Noddle
Yes, that's now been replaced by TransUnion/Credit Karma. Still free though!
Hi Andy, on clearscore there is a payments made screen for various accounts. On current accounts what would this qualify as? Eg I've got a new starling account with a payment made in June but all I've done is transfer money to and from it. Thanks
Hi Rydia, so the only current account data on your credit report that will be used by lenders is the size of an overdraft and how much of it you are using. Other spending and transfers won't be seen.
@@BeCleverWithYourCash Thanks for this :) so what would class as a successful payment received on a current account?