What does my credit score say about me?

A credit score may be used by lenders to help them decide whether to offer you a credit agreement, for example, for a credit card, loan or mortgage. It helps them to assess the level of your creditworthiness. A low credit score may suggest a higher risk to the lender, while a higher credit score can indicate that you are more likely to make the payments. In order to calculate your credit score lenders may use data from credit reference agencies (CRAs) alongside other information they have about you, like your income.

The credit scores that you can get from CRAs like Equifax are typically different from the ones that lenders use. They give you an indication of how creditworthy a lender may find you. There is no universal score – the three main agencies in the UK use different credit score ranges, so you shouldn’t compare a specific number among the agencies. The best way to see what your credit score means is to check the score from each agency and compare it to that agency’s guidelines. For example, your Equifax Credit Score falls into the categories ‘excellent’, ‘good’, ‘fair’, ‘poor’ or ‘very poor’.

If you’re planning on making an application for credit, you may want to check your Equifax Credit Report & Score in advance. Your credit report will give you a record of your borrowing history, which could help you decide whether you need to improve or keep up your borrowing habits. Meanwhile, knowing your score and what range it falls in can help to give you an indication of how lenders may view your creditworthiness.

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