There's no magic number that guarantees you'll get a loan. Read this quick guide to see why your credit score still matters – and get tips to improve it.
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What is a credit score?
Your credit score is a 3-digit number. It gives you an idea of how likely it is that you'll get a loan, or other credit.
If you want to get a loan, a good credit score could help. That's because it reassures lenders you'll pay them back.
A credit score is a snapshot of your borrowing history.
Your score depends on things like:
- If you've ever borrowed before.
- If you always pay back what you owe on time.
- How much you owe.
- How much of your available credit you're using.
- If you're registered to vote.
- Your previous credit applications.
3 myths about credit scores:
1. It's a myth you have one credit score
There are 3 main credit reference agencies: Equifax, Experian, and TransUnion. Each scores you differently. Lenders also use their own scoring.
2. It's a myth that income affects your credit score
Your credit score is only based on your borrowing. Yes, lenders factor in your salary, but it's not part of your credit score.
2. It's a myth that checking your eligibility affects your score
Your credit score is just one thing that lenders consider. So, what's the best way to find out if you could get a loan? Check your eligibility before you apply. This won't affect your score.
Check your eligibility without affecting your credit score:
Take a look at our loans