Understanding Your Credit Score

Credit score versus credit report

Your credit report is a record of how you have managed credit and certain bills over time. It typically includes accounts such as credit cards, loans and mortgages, whether you paid on time, and public records like County Court Judgments. A credit score is a number that summarises that history to suggest how likely you are to repay.

It is worth knowing that there is no single official score that every lender sees. Each lender applies its own criteria and often uses information beyond your report — such as details from your application — so you can be accepted by one lender and declined by another with a similar score.

Who holds your data

Three main credit reference agencies compile credit information in the UK: Experian, Equifax and TransUnion. The details each holds can differ, because not every lender reports to all three. That is why it can be sensible to check more than one.

• By law you can see the statutory information each agency holds about you free of charge
• Several free tools and apps also let you view your report and any updates
• Checking your own report is a “soft” search and is not visible to lenders as an application

What can affect how lenders see you

Lenders generally look for evidence that you manage credit responsibly. Factors that commonly help or hurt include your payment history, how much of your available credit you use, and whether your details are consistent across accounts.

• Paying at least the minimum on time supports your record; missed or late payments can count against you
• Being on the electoral register at your current address helps lenders confirm your identity
• Using a large proportion of your available credit limit can look like reliance on borrowing
• Several credit applications in a short period can suggest financial pressure

Checking and correcting your report

Review your report regularly and check the entries are accurate. If something is wrong — for example a payment marked as missed when you paid, or an account you do not recognise — you can ask the agency and the lender to correct it. An account you do not recognise can be a sign of fraud, so act quickly.

You can also add a short “notice of correction” to explain a specific circumstance, such as a period of illness, that a lender should take into account. This is information and general guidance, not regulated financial advice.

How long information stays on your report

Most entries stay on your credit report for six years. That includes accounts you have held, missed or late payments, defaults, County Court Judgments and formal insolvency solutions such as an IVA or bankruptcy.

A default drops off six years after the date it was recorded, even if the debt is still unpaid — the clock runs from the default itself, not from when you clear it. Hard searches, recorded when you apply for credit, are generally visible to other lenders for about a year and stay on your report for up to two. Your electoral-register information is updated as your registered address changes rather than expiring on a fixed timetable.