UK Average Credit Score
13th Jun 2025
Your credit score plays a significant role in your financial life, and staying on top of it can unlock many benefits which put you in a stronger financial position in the long run. A decent credit score opens the door to a broader range of financial products and services, from loans and mortgages to credit cards. It also means you could qualify for lower interest rates and higher credit limits. If your score isn’t where you'd like it to be, then you have your starting point to make improvements.
Checking Your Credit Score Is Free
You are legally entitled to check your credit report free of charge, and it only takes a few minutes. Checking your credit score and your file lets you quickly pick up any mistakes in your credit file, which you can then have corrected. Credit reference agencies will class your individual score into one of five types: Excellent, Good, Fair, Poor, and Very Poor
What Your Credit Score Actually Means for You
A better credit score means more options when applying for loans or credit cards. If you have a score classed as “fair”, you may face higher interest rates and lower credit limits. However, if you make payments regularly, your credit score may improve over time. If your credit score is listed as “good”, you’re more likely to be offered better interest rates and higher credit limits. If your credit score is “excellent”, or as good as it can be, you have the widest choice of loans and credit products, interest rates and credit limits.
How Your Credit Score Is Worked Out
Credit reference agencies work out your credit score based on your financial history—how well you've managed debt and made payments in the past. Making changes to your financial behaviour will improve your credit score, but you shouldn’t expect instant results. Get into the habit of checking your credit score every month to make sure your efforts are paying dividends.
The most important factors which affect your credit score are:
- Late or missed payments
- Exceeding your credit limit
- Defaults, bankruptcies, or CCJs
- Too many credit applications in a short period
- Joint accounts with someone who has poor credit
- Frequent cash withdrawals on credit cards
- Errors or fraud on your report
- Not being registered on the electoral roll
- Moving frequently
Some of these are easier to fix than others. The easiest is registering to vote if you haven’t already – it’s a five-minute job to get on the register through the government website. Then take action to correct any mistakes you have found on your credit record. If you have a joint account with someone who struggles to manage their money, consider closing the joint account and opening two separate accounts instead. Get organised with your payments; there are lots of apps available for download which can set alarms or reminders and help you manage your budget. If debt is a problem, get professional advice and start paying off the most expensive first.