A credit scoreis important forfinancial stabilityandborrowing power. Wondering about theaverage credit score UKcitizens have and how yours compares to the rest of the country? You’ve come to the right place.
We’ve compiled all available information oncredit scores in the UKso you can get a better idea ofwhat agood credit scoreis. If yours is falling behind, this article can help youimproveit; if it’s high, sit back and enjoy the benefits! Read on to find out everything you need to know about credit scores.
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Average Credit Score UK: Fascinating Facts
- The three major credit rating agencies in the UK areExperian,Equifax, andTransUnion.
- The average credit score in2021is797 (Experian scale).
- People inSouth Englandhave thehighest credit scores.
- 69%of UK residents don’t know theircredit score.
- People55 and overhave credit scores above863, the highest of all age groups.
- Teenagershave better credit scores (823) thanpeople in their 20s(792).
- 43%of people in the UK have missed a creditpayment.
- Themost used credit scorein the UK is fromExperian.
Different Types of Credit Scores
The first thing to know about theUK average credit scoreis that there is nouniversal credit score. Instead, there arethree different credit scoresandfive categories! We’ve listed thedifferent types of credit scoresbelow to show how credit scores are determined – and where yours might fall.
#1 There are three major credit rating agencies in the UK
(HSBC UK)
Your credit score is determined by acredit rating agency(CRA). The UK hasthree major agencies:Experian,Equifax, andTransUnion. Each of these agencies ranks credit scores differently, meaning theaverage person’s credit scorein theUKis calculated depending on the specific agent used.
#2 There are five categories of credit scores
(Barclaycard)
The three major CRAs divide credit scores into five categories:excellent,good,fair,poor, andvery poor. Even though each agency uses adifferent numerical scaleto rank your credit score, if you have afair credit scorewith one agency, you’ll likely have the samerankingwith the other two; they base their rankings on the same information likepayment history.
#3 Experian credit scores range from 0 to 999
(Barclaycard; Experian)
Experianis the largestcredit rating agency, with itscredit score rangein theUKbeing0 to 999. A721-880credit score is considered fair;881-960is agood credit scoreand961-999is excellent.
#4 The average Experian credit score is 759
(OceanFinance)
Theaverage credit scorefor those using Experian is759, which is afair credit score. A good Experiancredit score rangein theUKis between881and960, but this doesn’t guarantee that you’ll be approved for a loan or mortgage. ThisCRAlets youcheck your score for free, but if you want full access to yourcredit report, you’ll have to subscribe.
#5 Equifax credit scores range from 0 to 700
(Barclaycard; Equifax)
Equifaxcredit scoresstart at 0with themaximum scorebeing700; afair scorefalls between380-419, agood scorebetween420 and 465, and anexcellent credit scoreis466-700. Like the other credit rating agencies,Equifaxdetermines your score from information in your credit reports. Equifaxscoresusuallyrange from 300 to 850.
#6 The average Equifax credit score is 380
(OceanFinance; Equifax)
Theaverage UK credit scoreatEquifaxis380, which is barely considered afair credit score. However,datareleased in2018indicates that this is rising, as millions of people arescoringbetter now than three years ago.
#7 TransUnion credit scores range from 0 to 710
(Barclaycard; TransUnion)
TransUnionscoresrange from 0 to 710;fair credit scoresfall under566-603,good scoresare604-627, andexcellent scores rangebetween628-710. To determine theaverage UK credit score,TransUnionlooks at whether or not someone’sregistered to vote, whether there are anycourt judgements against them, if there are anybankruptcies or insolvencies, and currentcredit agreements.
#8 The average TransUnion credit score is 610
(OceanFinance; Barclaycard)
TransUnioncustomershave anaverage credit score of 610, which falls under thegoodcategory. Compared to the other two agencies where customers have anaverage fair score, theTransUnionaverage fares slightly better. If you have a score between628 and 710, it’s consideredexcellent.
The National Average
So,what is the average credit scorein theUK? Here’s all the information we could find on average credit scores in the UK in one place.
#9 The average credit score in 2021 is 797 on the Experian scale
(Experian)
The UK has been seeing a rise in average credit scores over the past two years. In2021, the average credit score was797; this is up by five points from2020when the average score was792. Compared with data from2019, when the average score was776, we can see that theaverage credit scorein theUKfor2021hasundergone a growth of 21 pointsin just two years!
#10 Being on the electoral register improves your credit score
(Money Super Market)
People that are registered to votein the UK havehigher credit scoresthan those that aren’t. The average credit score for those on the electoral register is573(TransUnion), while those who aren’t sitting around539.
#11 People in south England have the highest credit scores
(Money Super Market)
People living in the south of England have thehighest credit scoresin the country; specifically, the highest scores are in the southeast. Wonderingwhat’s the highest credit scoreby region? Look towardsKingston upon Thames, where the average score is586(TransUnionscale).GuildfordandReadingshare second place with583, followed byRedhillwith582.
#12 Sunderland has the worst credit score in the UK
(Money Super Market)
Sunderland residentshave theworst credit scorein the UKat552on the TransUnion scale, which is categorised as apoor credit score.DoncasterandWolverhamptonare slightly better in terms of credit scores, but they still rank poorly with554and555,respectively.
#13 Around 69% of UK adults don’t know their credit score
(Credit Strategy)
What’s the average credit scorein theUK?69%of adults in the UK don’t know theircurrent credit score. To rectify this, a newCredit Awareness Campaignwas launched to entice people to learn more about their financial health.
Credit Scores by Age
Ageis a determining factor when it comes to credit scores, so we took a look at whatcredit scoresare likeamongst age groups. Check out the following stats and see if you meet the average within your demographic.
#14 People over 55 have the highest average score
(Experian)
People55 and olderhave the highestaverage credit score by agein theUKat863. Thosebetween 51 and 55also have a very good average score of819; this is because they become morereliableand havebetter control over theirmoneyover time.
#15 The lowest credit score, 770, is recorded most in people’s early 30’s
(Experian)
People31 to 35have thelowest average scoreamong all age groups with770. People in their 30s are more likely to use their creditlimitonmortgagesor otherloansthat contribute to an accumulation ofhousehold debt; they also have a substantial amount ofcredit card debtwhich doesn’t bode well with credit rating agencies and lowers theUK average credit scorefor everyone.
#16 Teenagers have better credit scores than people in their twenties
(The Guardian)
18 and 19-year-oldshavehigher credit scores than twenty-somethings. The average credit score forlate teenagersis823; this falls to792forthose aged 21 to 25. Credit scores continue falling as people approach thirty; the average score for the26 to 30age group is776. Theaverage credit score by ageis low for those in their 20’s because most of them are paying off theirstudent debt, which can be quite substantial.
#17 Credit scores begin to rise for those around 40
(Experian)
When people turn 40, their credit scores tend to move upwards. Thosebetween 41 and 45have an average score of792, while those in theirmid-to-late-fortiesaverage out to804.
More Facts You Should Know
Now that we’ve discussedwhat is an average credit scoreand how the numbers differ depending onlocationandage group, here are a few extra tidbits that may be of interest. We found all the need-to-knows on credit scores, so don’t skip this part!
#18 You can get a mortgage with a fair credit score
(Have it)
Many people are concerned and uncertain about if their credit scores are good enough to getmortgage approval. Even though each lender hasdifferent criteriawhen it comes to approving someone, theaverage credit score for a mortgagein theUKis around fair. That being said, you may find a lender that’s willing to give you a mortgagedespite a bad credit scoreif yourpaymentschedule is precise.
#19 At least 37% of UK citizens break the 30% rule
(Mirror.co.uk)
The30% rulesays that you should never use more than 30% of your available credit. However, a good portion of the British public doesn’t follow this advice.About one in fourBritish adults (37%) use50%of their creditlimit.Secure loansare a popular form of borrowing in the UK; people often take these loans out to clear otherdebt. By doing so, they fall behind on theaverage credit scoreneededto buy a housein theUK, or the average needed for other substantial loans.
#20 Around 43% of people have missed a credit payment in the past year
(Mirror.co.uk)
Missed payments are detrimental to credit scores;43% of peoplein the UK have missed apaymentin the past year. Additionally,one in eight peoplehavedefaulted on a loan, which is also frowned upon by credit rating agencies.
#21 The most used credit score in the UK is Experian’s
(Debt Camel)
In the UK, themost used credit scoreis fromExperian(76%), followed byEquifax(54%). The least used out of the three major agencies isTransUnion(30%).
Wrap Up
What is the highest credit scorein theUK? Thanks to this article, you can identify this andaverage scores by region and age. By knowing these numbers, you can check your credit score and see if it meets the average. Most importantly, you can see whether you have asufficient scoreto get the mortgage orloanthat you need. Good luck!
FAQs
What is UK average credit score? ›
However, you can increase your chances of acceptance with a credit card for bad credit, and when managed responsibly, it could help you build your credit score. The average UK credit score is 797 out of 999 (according to Experian), however scores can vary depending on the credit reference agency.
What percentage of population has 750 credit score? ›Credit Score Statistics FAQ
According to FICO's most recent report in April 2021, 23.3% of the US population have an excellent credit score of 800 and more, while another 23.1% have a credit score of between 750 and 799.
The UK has three main credit reference agencies – Equifax, Experian and TransUnion – that collect this information to produce your credit report and credit score.
What is a good credit score in UK? ›Experian is the largest CRA in the UK. Their scores range from 0-999. A credit score of 721-880 is considered fair. A score of 881-960 is considered good.
What is a poor credit score UK? ›In the UK, having bad credit can impact how many lenders are willing to give you a credit card, mortgage or bank loan. A bad credit score with Equifax is under 379. A 'Poor' credit score with Equifax is 280-379, and a 'Very Poor' credit score is under 279.
What is a good credit score to buy a house UK? ›If you're looking to access the very best mortgage rates, you could try and bump your credit score up into the 'excellent' category: Experian – 961 to 999. TransUnion – 628 to 710. Equifax – 466 to 700.
How many Americans have over 700 credit score? ›6 in 10 Americans have a FICO score above 700. [Source: Experian] A good credit score can potentially help you save money on your mortgage, car insurance, credit cards and many other things.
How many Americans have a 850 credit score? ›While achieving a perfect 850 credit score is rare, it's not impossible. About 1.3% of consumers have one, according to Experian's latest data. FICO scores can range anywhere from 300 to 850.
What percentage of the population has an 800 credit score? ›| Credit Score Range | Percentage of Adults |
|---|---|
| 800 - 850 | 23.3% |
| 750 - 799 | 23.1% |
| 700 - 749 | 16.4% |
| 650 - 699 | 12.5% |
While the major credit bureaus in the U.K. and the U.S. are the same — Equifax, Experian and TransUnion — your U.K. credit history does not automatically transfer to the U.S. when you move between these two countries.
Are UK and US credit scores different? ›
Many countries, including Canada and the U.K., have credit scoring systems that are similar to the American system. Yet, there is no communication between the systems. So your credit score in the U.S. will not affect your credit score in the U.K.
How do I establish credit in the UK as a US citizen? ›Open a bank account
Having a bank account can help you build your UK credit score, providing that it is managed well. However, having no credit history can make it difficult to open your first account. You can try banks such as the Cooperative, building societies like Nationwide, or online banks as Starling or Monzo.
Experian is the UK's largest credit reference agency. You can access your Experian credit score by registering on the Experian website. It's quick and doesn't cost anything. To get a peek at your full credit report, you'll need to register for the free 30-day trial of Experian's CreditExpert service.
Does your credit score follow you to another country? ›Does your credit score follow you to another country? Typically, a credit score is only applicable within its respective country. If you decide to move to another country, you'll likely need to build a new credit score.
What is a good credit score USA? ›Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What is a soft credit check UK? ›A soft credit check doesn't leave a visible footprint on your credit file, but it is recorded. This means no other lenders can see it. A soft credit check won't impact your credit score, but, you'll be able to see if anyone has checked your credit history.
Why is my credit score 0 UK? ›You've not used any credit in a long time
If it's been longer than that, and you don't have any other credit accounts on your report, you might not see a credit score. It's a good idea to start building your score again – you could take out a credit builder card .
Lenders like to see a mix of both installment loans and revolving credit on your credit portfolio. So if you pay off a car loan and don't have any other installment loans, you might actually see that your credit score dropped because you now have only revolving debt.
Does anyone have a 999 credit score? ›There's no universal number that indicates a good score because each credit agency uses a different scoring system. Experian, for example, uses a range from 0 to 999. A score of between 881 and 960 is good, between 961 and 999 your score is excellent.
What credit score is needed to buy a car UK? ›While there is no minimum credit score requirement for auto financing in the United Kingdom, most lenders favour applicants with credit scores between 670 and 710. A low credit score or a history of missed payments can lead to higher interest rates or difficulty obtaining auto financing.
Do you need credit to buy a house in the UK? ›
In the UK, there's no set minimum credit score you need in order to buy a house. However, if you're buying a house with a mortgage, your credit score must be high enough for lenders to be willing to offer you a mortgage.
How rare is 800 credit score? ›According to a report by FICO, only 23% of the scorable population has a credit score of 800 or above.
Do many people have a 900 credit score? ›Only 1% of the population can achieve a credit score of 850, so there's a certain point where trying to get the highest possible credit score isn't realistic at all. Not to worry though, having good credit can start at around 700. In fact, only a few credit score models have a credit score limit of 900.
How many Americans have 800 plus credit score? ›Your 800 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
Why is it so hard to get a credit score of 850? ›According to FICO, about 98% of “FICO High Achievers” have zero missed payments. And for the small 2% who do, the missed payment happened, on average, approximately four years ago. So while missing a credit card payment can be easy to do, staying on top of your payments is the only way you will one day reach 850.
How accurate is credit karma? ›Here's the short answer: The credit scores and reports you see on Credit Karma come directly from TransUnion and Equifax, two of the three major consumer credit bureaus. The credit scores and reports you see on Credit Karma should accurately reflect your credit information as reported by those bureaus.
How to go from 850 to 900 credit score? ›- Pay your credit card bills often. ...
- Keep a solid payment history. ...
- Consider your credit mix. ...
- Increase your credit limit. ...
- Don't close old accounts. ...
- Regularly monitor your credit report. ...
- Only apply for credit when you really need it.
Scores 565 and below are considered Needs Work. Scores between 566-603 are considered Fair. Scores between 604-627 are considered Good.
Is 350 a good credit score UK? ›Your score falls within the range of scores, from 300 to 579, considered Very Poor.
Is a credit score of 400 good UK? ›New bands: Poor (0-438), Fair (439-530), Good (531-670), Very Good (671-810), Excellent (811-1000). Changes in bands don't indicate an actual improvement in credit score; it's just a new scale. Clearscore provides free access to Equifax credit data, one of the UK's main credit reference agencies.
Does anyone in the world have an 850 credit score? ›
While achieving a perfect 850 credit score is rare, it's not impossible. About 1.3% of consumers have one, according to Experian's latest data. FICO scores can range anywhere from 300 to 850. The average score was 714, as of 2021.
Who has 850 credit score? ›Your 850 FICO® Score falls in the range of scores, from 800 to 850, that is categorized as Exceptional. Your FICO® Score is well above the average credit score, and you are likely to receive easy approvals when applying for new credit. 21% of all consumers have FICO® Scores in the Exceptional range.
How rare is 900 credit score? ›What percentage of the population has a credit score over 900? Only about 1% of people have a credit score of 850. A 900 credit score can be thought of as fairly unrealistic.
Can I buy a house with a 710 credit score? ›Technically, a 710 credit score is high enough to qualify for a home loan. In the tight real estate market, some lenders choose more restrictive qualifications to further reduce the risk that the loan won't be repaid.
Can I buy a house with a 592 credit score? ›Can I get a mortgage with an 592 credit score? Yes, your 592 credit score can qualify you for a mortgage. And you have a couple of main options. With a credit score of 580 or higher, you can qualify for an FHA loan to buy a home with a down payment of just 3.5%.
How do I check my credit score UK? ›Experian is the UK's largest credit reference agency. You can access your Experian credit score by registering on the Experian website. It's quick and doesn't cost anything. To get a peek at your full credit report, you'll need to register for the free 30-day trial of Experian's CreditExpert service.
What is the minimum credit score to buy a car in the UK? ›In the UK, there's no minimum credit score needed to apply for car finance or purchase a vehicle. However, your score will impact what loan products you're eligible for and what types of terms, conditions and interest rates you can unlock. Generally, higher scores translate to better deals.
Can I buy a car with a 591 credit score? ›Can I get an auto loan with an 591 credit score? The short answer is yes, but you're likely to get a significantly higher-than-average interest rate. To put it into perspective, as of November 2022, the typical borrower with prime credit (720 or higher FICO score) got an APR of 5.34% on a 60-month new auto loan.
What is the average credit card debt in the UK? ›In the UK, the average credit card debt per person varies by age, but sits overall at £5,400. Keep reading to understand the implications of these debts across generations. This article contains tops tips from our financial experts, backed by in-depth research.
What is a good Equifax score UK? ›Although ranges vary depending on the credit scoring model, generally credit scores from 580 to 669 are considered fair; 670 to 739 are considered good; 740 to 799 are considered very good; and 800 and up are considered excellent.
What is the average TransUnion credit score in the UK? ›
TransUnion score between 0-710. The overall UK average is 573**.