ePrivacy and GPDR Cookie Consent by Cookie Consent Find Out What Is Classed As A Good Credit Score.

Find Out What Is Classed As A Good Credit Score.

Understanding your credit score can be tricky but knowing whether you have a good score or not really helps if you are applying for any type of loan. So let’s start out with the basics. There are three major credit scoring agencies, Equifax, Experian and TransUnion. All of these can provide a credit report. If someone is running a credit check on you, they are more than likely going to be using data from at least one of these companies.

Unfortunately, what is classed as a good credit score is different for each of these agencies because they all calculate your score differently.

Equifax calculates credit score on a 0-700 scale with 420-465 considered good.

Experian uses a 0-999 scale and considers scores between 881 and 960 to be good.

TransUnion works on a scale from 300 to 850 and considers a good score to be something between 661 and 720.

These scores can help you get an idea of how your credit looks to lenders. They form the basis for most loan agencies’ decisions but there is another layer of complexity. There is no such thing as a universal credit score so every lender may calculate your creditworthiness differently. This is because credit reference agencies and lenders all have access to different sources of data. In other words, what is classed as a good credit score can vary from lender to lender.

An example of this could be that lender A uses your credit score from Equifax and Experian but not TransUnion. Then they factor in how much money you make each month and how long you have been working at your current job. Lender A runs all this through a formula that produces a credit score. That credit score only makes sense to lender A in our example because other lenders may have a different formula.

For people wondering what is classed as a good credit score, this can be confusing or even annoying. The good news is you can get an overall idea of how healthy your credit score is by checking where you rank with the three credit scoring agencies mentioned above.

By monitoring your three credit scores you will be able to see what your lender sees. You can also keep an eye out for any issues. If your credit score on one or all of the 3 agencies looks low, you can do a bit of research and find out the best ways to improve it.

This could include consolidating your debts so you are making one single payment with lower interest. Once that is done you can look into limiting new requests for credit as this can lower your overall credit score. Finally, make sure you are paying at least the minimum balance on your bills and debts to avoid more black marks on your credit.

If you are struggling with poor credit and you need extra cash, Everyday Loans can help. We can lend money to people with less than perfect credit and help you put together a loan with a payment plan that works for you.

Posted in Bad Credit, Personal Finance on Mar 22, 2021.

Jason Bovington

Written by Jason Bovington - COO

Jason became Chief Operating Officer in July 2022. He joined Everyday Loans initially in 2006 as part of the start up team implementing the credit risk strategy and building the analytical capability as Head of Credit Risk and Analytics. In his time with Everyday Loans he has also held the roles of Chief Risk Officer and Chief Credit Officer. Prior to joining Everyday Loans Jason spent 10 years at HFC Bank with his last role there being Credit Risk Director and prior to that he was part of the Credit Risk team at Lloyds TSB.

You may also like...

EVERYDAY LOANS WINS AGAIN IN LEADING CUSTOMER SERVICE AWARDS

EVERYDAY LOANS WINS AGAIN IN LEADING CUSTOMER SERVICE AWARDS

Bourne End-based Everyday Loans has won a prestigious customer service award for the third year running. The fast-growing company that employs over 450 people across a 74-strong UK branch network has been crowned the Moneyfacts Best Non-mainstream le...

8 TIPS TO REDUCE YOUR CAR RUNNING COSTS

8 TIPS TO REDUCE YOUR CAR RUNNING COSTS

Along with everything else at the moment, motor costs are rocketing. It’s estimated Britain’s 36 million car owners spend around £3,000 per year running their vehicle. Expensive petrol prices, insurance premiums and the annual service, added to the c...

We've only gone and done it again!

We've only gone and done it again!

We’re absolutely delighted to announce that Everyday Loans has won the prestigious Non-Mainstream Loan Provider of the Year award in the Moneyfacts

Terms of Use:

The Everyday Loans News and Blog area is for informational purposes only. The information provided shouldn’t be seen as advice. Using any information in the blogs or news articles is at the reader's risk.

The information posted is accurate and true to the best of Everyday Loans knowledge at the time of publication.

Everyday Loans doesn’t accept liability for the information provided on third-party websites. It reserves the right to edit, amend, or remove any post at any time without notice. The external links in the blogs are not affiliate links, and Everyday Loans won’t receive any commission if the reader clicks on the link.