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Home > Blog > What is a Good Average Credit Score in the UK?

What is a Good Average Credit Score in the UK?

Published: 14th January 2021
What is a Good Average Credit Score in the UK?

Have you ever wondered how your credit score matches up against everyone else? Nearly everyone has a general idea of how they’re credit score is looking, but not so much how their score compares to the rest of the UK. 

Well, stop wondering, in this blog we’re going to cover the average credit score across the UK and what a good credit score looks like. 

What Is A Credit Score?

While you may not think credit scores play a big role in your life, they can affect everything from car leasing to mortgages and phone contracts. If it involves money, you can bet your bottom dollar that credit scores will be lurking somewhere.

In layman’s terms, a credit score is a unit of measurement that records your ‘trustworthiness’ as a borrower. This unit is what lenders use to decide whether they’re going to lend to you or not, or, if they do, how much they charge.

A credit score is derived from a handful of things that you do every day, paying bills on time, taking out new credit, spending, balancing different types of credit etc. however, some aspects have a larger influence than others.

There are three main credit reference agencies that are standard across the UK, these are Equifax, Experian and TransUnion. While each agency may have a different scoring system, each follows a fairly similar structure – rating credit scores from good to bad.

Why Your Credit Score Important?

A credit score as you get older is something that is either going to push you forward or hold you back – depending on if your credit score is good or bad. 

Having a good credit score can seriously set you up for life (if consistent), better interest rates on loans, cheaper insurance, more housing options, access to the best credit cards, you name it. 

You might not think that having a good credit score is that important, but the truth is it can make things a great deal easier having access to good credit.

Credit Score Ranges

What Is A Good Or Average Credit Score?

Having an idea of what the average credit score in the UK is can make it much more encouraging when setting goals, as you know what you’re aiming for. Much the same when looking at what a good credit score is, setting a visual goal can make all the difference. 

Although, a good credit score and an average credit score are not the same – far from it. The average is the mean of all the credit scores across the country which consists of both bad and good scores. 

In fact, the average across most sources shows that ‘good’ isn’t necessarily average, but what to aspire to – with the average mainly consisting of ‘fair’. 

What Is The Average Credit Score Across The UK?

While it would be great to say this is the average credit score in the UK, it’s difficult to provide an average score for everyone. This is because there are three main credit reference agencies in the UK that all have different scoring systems. 

Experian is probably the most popular out of the three with credit scores ranging from 0-560 (very poor) all the way to 961-999 (excellent). The average of which is 759 which slots neatly into the lower side of the ‘fair’ category. 

Equifax is equally just as popular, being the supplier for ClearScore’s data. They have a similar scoring system (only differing slightly). Ranging from 0-279 (very poor) to 466-700 (excellent). The average credit score for Equifax is 380, which only just by default is the ‘fair’ category, but could just as easily be ‘poor’. 

TransUnion, again has a fairly similar scoring system. With the lowest bracket covering 0-550 (very poor) and the highest 628-710 (excellent). Unfortunately, TransUnion hasn’t released the average score across the UK so we’re not able to compare. However, we can presume it’s pretty similar in that the average credit score is teetering between ‘poor’ and ‘fair’. 

The average credit score also varies across the UK based on different regions, with some regions ranking quite well, and others not so much. These metrics are provided by Experian’s Credit Score Map

The lowest region is arguably Kingston-upon-Hull with an average credit score of 661, while the highest region is Isles of Scilly which has an average credit score of 848.

What Is A Good Credit Score?

Not dissimilar to the average credit score in the UK, it’s difficult to accumulate data as to what a good credit score looks like across the board – because there are so many different rating systems! 

Luckily working out what a good credit score across Equifax, Experian and CreditUnion is a much simpler task as they slot neatly into their designated categories.

Experian’s ‘good’ credit score is between 881-960 which is arguably higher than the average score, 759. Proving definitively that average and good aren’t necessarily always the same. 

Equifax, ClearScore’s provider’s ‘good’ credit score is 420-465, which when compared to the average 380 is considerably higher.

TransUnion’s ‘good’ credit score is 604-627, which we can only imagine is noticeably higher than the average credit score for TransUnion.

FICO Credit Score Chart

What To Do If Your Credit Score Is Below Good/Average

While having a good credit score proves rather helpful in securing good credit and snagging great deals, it’s not the be-all and end-all. Yet, it’s a general consensus that having a good credit score is something to strive for. 

So if you have a below-average credit score and are wanting to work your way up to ‘good’ and beyond, we’ve put some tips together to improve your credit score.

Improving Your Credit Score  

Whether you’re looking to improve your credit score from bad or improve your credit score quickly there are various aspects you can attack to do so. 

How long it takes to improve your credit score can very much depend on the extent of damage on your report, meaning you will have to work harder and more consistently to see improvements.

Here are some sure-fire ways to see your credit score get the TLC it needs: 

  • Pay your bills on time and in full – Did you know that a missed payment can stick around for up to seven years? Did you know that your payment history makes up 35% of your FICO score?
  1. Spend less on your credit card –  If you’ve racked up a substantial amount of debt this can hurt your credit score – especially if you’re struggling to pay it back.
  2. Signing up for the electoral roll – While this may seem completely unrelated, any information you can provide to lenders can help them determine your trustworthiness much easier.
  3. Avoid making any hard enquiries – While that new discount sofa may be looking pretty good right now, any enquiries for credit in a short period of time can make it look like you’re overly reliant. 
  4. Keep your accounts open – The third most important factor in making up your credit score. It may be worth using your second credit card a couple of times in the month just to keep the account open, the same can be said for current accounts and phone contract etc.  

Affordable Car Leasing For Below Average Credit Scores

If you’re below the UK’s average credit score, which as we’ve seen is appreciably below ‘good’ no worries! Wheels4Sure provides simple, affordable non-status car leasing. Providing a car leasing model structured around affordability, not your credit score.

And with a 95% acceptance rate, you can say goodbye to your old, packed-in motor and drive away happy. We have a wondrous range of brand-new and preowned deals available, comprising of big brands such as Renault, Fiat and Hyundai.

If you’d like to find out more about what we do and how you can get involved, simply fill out our enquiry form or call us on 0203 823 1010 to speak to one of our personal advisors.

 

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