Learn more about your Credit Score / Rating
- What is a Credit Score?
- How do I interpret my score?
- How do I manage my Credit Rating?
- How do I upgrade my recent Credit Report to Credit Rating?
What is a Credit Score?
Regularly checking your credit report for changes you did not make is one of the best ways to combat identity theft.
This helps lenders decide whether to offer you a particular credit card, loan, or service.
Using the information in your credit report, lenders use a mathematical model to work out your credit score. This shows the level of risk a company will take by lending you money or providing you with a service - in other words, the likelihood that you'll make your payments on time for the next two to three years.
The higher the score, the lower the risk you are to lenders. Each lender follows a different policy for credit assessments, and if you don't meet the criteria of one lender you can often still get credit from other organisations.
Your Equifax Credit Rating™. is an excellent guide to help you better understand your score.
How do I interpret my score?
We divide your credit report into three sections:
- Score analysis - this shows your actual Equifax credit score, along with a description of what it means.
- Risk signals - these give you an idea of how lenders will view your information in the four key areas:
- Credit agreements and payment performance
- Electoral roll standing
- Searches
- Public record information such as county court judgments (CCJs) and bankruptcies
- Report analysis - our credit rating will give you a more detailed description of the individual qualities that lenders think about in each of the four areas above, and how you compare.
While there are many different formulas to calculate credit scores, most take into account the following factors:- Payment history - a record of late payments on your current and past credit accounts will lower your score
- Public records - publicly recorded items such as bankruptcies and judgments may lower your score
- Amount owed - owing too much will lower your score, especially if you're almost at your credit limit
- Length of credit history - a longer credit history usually gives lenders a better idea of your reliability
- New accounts - opening lots of new accounts in a short period of time might lower your score
- Searches - a large number of recent credit searches might lower your score
- Accounts in use - too many open accounts can lower your score, whether you're using them or not
The context is more useful than the score itself in helping you understand what it means about you. If you already have a high score (for example, in the mid 400s or higher) some of the factors may not be very relevant as you already have a high score based on the positive information in your report.
How do I manage my Credit Rating?
It's a good idea to try and improve your credit score, as a higher score can give you more financial options and better credit offers. Even if you already have a good score, there's always room for improvement by carefully managing your credit.
Do keep in mind that your credit score is based on your history of borrowing and repaying money, so you can't instantly change it. But here are some strategies that can strengthen your credit score over time.
- Make all of your payments on time. If you have to miss one, make sure you pay the next month.
- If you're eligible to vote, make sure you're registered on the electoral roll at your current address with your local council. If you've recently moved, register as soon as possible with your new council.
- Correct any incorrect information that you see on your credit report.
- If you fall behind with payments because of illness, unemployment, or family issues, call your creditor to explain the circumstances and, if possible, work out a payment schedule you can meet. If you need help managing your credit, contact a reliable not-for-profit agency, such as the Consumer Credit Counselling Service (CCCS) (Phone 0800 138 1111).
- If your credit history is poor, or you have a very short credit history, there are still ways to improve your credit rating over time. Consider opening new accounts responsibly and paying them off on time to show lenders you are capable of managing credit.
- Keep your spending under control. Lot of outstanding debt may negatively affect your credit rating, as you have a greater chance of missing payments.
- Learn what your current Equifax rating is and what appears on your credit report. Equifax Credit Rating™ gives you immediate access to your credit report and includes your current Equifax rating. Check your credit report regularly and correct errors and inaccuracies that can make it harder for you to get credit.
Your Equifax Credit Rating™. is an excellent guide to help you better understand your score.
How do I upgrade my recent Equifax Credit Report to Equifax Credit Rating™?
Regularly checking your credit report for changes you did not make is one of the best ways to combat identity theft.
Our customer care team would be happy to help you upgrade. Just log in to theMember Centre. and then click on the Contact us tab at the top of the page. You can then contact the team on the phone number listed.
Explain that you'd like to upgrade your credit report. They'll ask for your credit card details over the phone and upgrade your report for you.