What is a good credit score?
There are three main credit reference agencies — TransUnion, Experian, and Equifax — and each credit reference agency uses different methods and score bands to calculate your credit score. Each lender will also look at your credit score and will often create their own score based on what is most important to the lender based on the product that you may be applying for.
Each credit reference agency will, however, provide you with bands for your score and these may will vary between each agency.
What is a good credit score with TransUnion?
The credit reference agency, TransUnion, provides the data TotallyMoney uses to build your Free Credit Report. Their credit scores are out of 710, and they define a good credit score as anything that’s 604 or more.
To find out what your credit score is with TransUnion, simply sign up for TotallyMoney’s Free Credit Report. It doesn’t cost anything, won’t harm your credit rating, and your score is updated each time you log in — so you always have an up-to-the-minute picture of your financial health.
What is a good credit score with Experian?
Experian provide credit scores out of 999, and define a good credit score as anything that’s 881 or above.
What is a good credit score with Equifax?
Equifax provide credit scores out of 1,000, and define a good credit score as anything that’s 531 or above.
Comparison table for each credit reference agencies credit score:
|TransUnion||0 - 550||551 - 565||566 - 603||604 - 627||628 - 710|
|Experian||0 - 560||261 - 720||721 - 880||881 - 960||961 - 999|
|Equifax||0 - 438||439 - 530||531 - 670||671 - 810||811 - 1000|
Why is it important to have a good credit score?
There are several reasons why it’s important to have a good credit score. If you’re hoping, for example, to take out a mortgage to buy your own home one day, your credit score will need to be in good shape to get accepted and to get the best rates. Having a good credit score also means you’re much more likely to get the best rates when you take out other credit products. For example, you’re much more likely to get better credit card offers (such as longer balance transfers and purchase deals), low-APR loans, and even 0% finance agreements if your credit score is good. If your credit score isn’t good, though, it doesn’t necessarily mean you won’t get accepted for credit. However, lenders will view you as more of a risk, and as a result your interest rates will probably be higher, and any purchase or balance transfer offers you get will probably be shorter. Before you apply for anything, it’s always a good idea to check your eligibility and see your chances of being accepted.
How can I get a good credit score?
To get a good credit score, you need to know first what your credit score is. It might already be good! You can find out what your credit score is by signing up for your Free Credit Report with TotallyMoney. It only takes a few moments, won’t harm your credit rating, and doesn’t cost a penny.
If you already know what your credit score is, and it could do with improving, you need to convince lenders that you’re a responsible borrower and that you can you can be relied upon to pay back what you owe. For more on how to get a good credit score, read our guide: ‘11 tips on how to improve your credit score.’
Summary: what is a good credit score?
- 604+ with TransUnion
- 881+ with Experian
- 531+ with Equifax