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When people talk about their credit rating, they often think there is one universal credit score. They might assume that if their credit score is 900 and their friend's credit rating is 710, they have a better chance of taking out loans or credit cards than their friend does.
In reality, this isn't an accurate portrayal of how credit scores work. There is no universal credit score and there’s more to your credit file than the number at the top of it.
Did you know that you have three different credit scores? These credit scores are determined by credit reference agencies, of which there are three main ones in the UK.
Therefore, to determine the average credit score in the UK, we will have to provide an average across all these three scores. However, the true ‘average’ score may vary.
As an example, Experian's maximum credit score is 999, Equifax's maximum credit rating is 1,000 and TransUnion's maximum score is 710.
There are three main credit reference agencies in the UK (Experian, Equifax and TransUnion) and each one has a different method for scoring individuals set on different ranges.
However, each credit reference agency is regulated by the Financial Conduct Authority (FCA) meaning you can enjoy peace of mind that you're being assessed fairly and within reason.
This means that the UK average score varies from one company to the next. Lumping the scores from all three credit rating agencies together would be ineffective in measuring the average.
There are three main credit reference agencies in the UK:
Experian
Equifax
TransUnion
Each credit reference agency is regulated by the Financial Conduct Authority (FCA).
However, the difference in ratings means that the UK average score varies from one company to the next. Lumping the scores from all three credit rating agencies together would be ineffective in measuring the average.
The average Experian credit score is 797, according to data from January 2024. This is out of a maximum score of 999.
In January 2024, Finder.com reported that the UK’s average credit score was 644, which is based on Equifax’s average score. This is out of a maximum credit score of 1,000.
The average Transunion credit score is 610, according to data from 2023. This is out of a maximum score of 710.
A good credit score can vary between the different credit rating agencies.
Experian uses a 5-band system ranging from very poor to excellent, with the highest possible score of 999.
The credit score bands for Experian in 2024 are as follows:
Very poor: 0-560
Poor: 561-720
Fair: 721-880
Good: 881-960
Excellent: 961-999
TransUnion uses a 5-band system ranging from very poor to excellent, with the highest possible score of 710.
The credit score bands for TransUnion in 2024 are as follows:
Very poor: 0-550
Poor: 551-565
Fair: 566-603
Good: 604-627
Excellent: 628-710
In 2021, Equifax removed 'very poor' from its rating system and added ‘very good’ in between ‘good’ and ‘excellent’.
The credit score bands for Equifax in 2024 are as follows:
Poor: 0-438
Fair: 439-530
Good: 531-670
Very good: 671-810
Excellent: 811-1,000
According to Experian, the highest UK average credit scores can be found in these areas:
Isles of Scilly: 881
Wokingham: 877
Chiltern: 874
Elmbridge: 872
Hart: 872
Waverley: 871
St Albans: 871
South Cambridgeshire: 867
Brentwood: 850
West Oxfordshire: 844
While the lowest average Experian credit scores can be found in these areas:
Kingston-Upon-Hull: 696
Blaenau Gwent: 702
Blackpool: 709
Merthyr Tydfil: 712
Middlesbrough: 713
Northeast Lincolnshire: 717
Knowsley: 722
Hartlepool: 724
North Ayrshire: 737
St. Helens: 744
If you'd like to see the average credit score in your town or city, take a look at Experian's average credit score map. By typing in your postcode, you can see how your credit rating compares to other people in your area.
According to Finder.com's data, not only does credit score vary by location, it varies by age too.
Here are the average Experian credit scores based on age group.
18-25 year olds have an average credit score of 447.
25-34 year olds have an average credit score of 539.
35-44 year olds have an average credit score of 637.
45-54 year olds have an average credit score of 718.
55-64 year olds have an average credit score of 781.
65+ year olds have an average credit score of 839.
Your credit scores are important as they're a reflection of your credit history as a whole and impact your ability to borrow money.
When you apply for a loan, credit card or another type of debt, the lender will carry out a credit check to determine your risk and decide whether you're a reliable borrower.
They'll carry out this credit search with at least one of the three credit reference agencies. You'll often hear a FICO score used interchangeably with a credit score. Don't worry, FICO is just a way of calculating credit scores.
If you have a bad credit record, to lenders this can be a sign that you don't manage credit effectively and you've struggled with late or missed payments in the past.
If you have a good credit score, this can indicate to lenders that you're a responsible borrower who can manage debt effectively and repay creditors on time.
However, your credit score doesn't paint the whole picture.
When you apply for a loan or credit card, most lenders will look at your credit history as a whole.
They'll see your credit score, but they're unlikely to make a decision based on that number alone. Instead, lenders typically want to see that:
Your payment history (on time and in full)
You pay your bills on time (gas, electric, car finance)
You're registered to vote
You don't max out all available credit (number of credit accounts)
You haven't made multiple credit applications in a short space of time
You have a clear address history
You have a good 'credit mix' (a mixture of different types of credit e.g personal loan, credit cards and mortgages)
You don't have any CCJs and you haven't been declared bankrupt
Lenders also have their own methods for scoring individuals. So, while some might refuse to lend money to you based on your borrowing history, others might approve your application.
If you've been refused credit because of a bad credit record, it's good to wait a few months before making another application.
Submitting too many applications in a short period can deter potential lenders and make them worry you won't be able to pay them back. Thus, reducing your credit limit (i.e., the amount you're able to borrow).
It’s also wise to improve your credit score before applying for another loan or credit card, especially if you are looking for a loan in London.
Here are a few tips to get you started:
Paying existing debts on time and in full
Make sure you’re on the electoral roll
Lowering your credit utilisation ratio
Checking your credit report is accurate and up to date
Getting in touch with the credit reference agencies if you notice any incorrect information or signs of fraudulent activity on your credit report
Improving your credit score isn’t an overnight process but by managing your debt responsibly, you can build up a good credit history over time and increase your access to good interest rates and generous terms.
