GuideUpdated 7 July 2026
What a credit score actually is
A credit score is a number that summarises how you have managed borrowing and bills in the past. Lenders use it, alongside your income, outgoings and the details of your application, to judge how likely you are to repay. There is no single official UK credit score: each credit reference agency calculates its own, and every lender then applies its own scoring on top, weighting the underlying information in its own way. That is why you can be accepted by one lender and declined by another with the same file, and why a "good" score is a guide rather than a guarantee of any particular outcome.
The three credit reference agencies (CRAs)
In the UK there are three main credit reference agencies: Experian, Equifax and TransUnion. They each hold a credit file on you, built from information supplied by banks, lenders and other organisations, plus public records such as the electoral roll, county court judgments and bankruptcies. The three files are usually similar but not identical, because not every lender reports to all three. Each agency also presents your score on a different scale, so a number from one cannot be compared directly with another. When you apply for finance, a lender may check one, two or all three agencies. It is worth reviewing your file with each agency at least once so you know what every lender might see and can correct anything wrong.
What affects your credit score
Lenders and agencies look at patterns over time rather than a single event. The main factors include: • Payment history — whether you pay credit cards, loans, mortgages and bills on time. Missed or late payments are among the most damaging entries. • Credit utilisation — how much of your available credit you are using. Regularly running cards near their limit can weigh against you. • Length of credit history — a longer track record of well-managed accounts generally helps. • Recent applications — several credit applications in a short space of time can suggest you are under financial pressure. • Public records — county court judgments (CCJs), defaults, individual voluntary arrangements (IVAs) and bankruptcies have a significant negative effect. • Electoral roll registration — being registered at your current address helps lenders confirm your identity. Things that do not affect your score include your salary on its own, your savings balance, and checking your own report.
Soft searches versus hard searches
There are two kinds of credit check, and the difference matters. A soft search is a light-touch look at your credit file. It is visible only to you, not to other lenders, and it has no initial impact on your credit score. Eligibility checks and quotation tools typically use a soft search so you can see your likely options without affecting your rating. A hard search is a full check, recorded on your file for other lenders to see. It usually happens when you formally apply for credit and the lender is ready to make a decision. Several hard searches close together can lower your score and may look like you are seeking a lot of credit at once. When you check your options with us, we use a soft search, which has no initial impact on your credit score. If you decide to proceed, a lender may later carry out a hard credit search — but only with your consent.
How to improve your credit score
Improving a credit score takes time and consistency rather than any quick fix. Steps that generally help: • Register on the electoral roll at your current address. • Pay every bill and credit commitment on time — setting up Direct Debits for at least the minimum can prevent slips. • Keep credit card balances well below their limits where you can. • Avoid making lots of credit applications in a short period; space them out and use soft-search eligibility checks first. • Check your report with all three agencies and dispute any errors, such as accounts that are not yours or a payment wrongly marked as missed. • Build a track record with a small, well-managed line of credit if you have little history. • Consider whether you are financially linked to anyone (for example a joint account) whose credit could affect yours. Progress is gradual, so start well before you plan to apply for finance.
Adverse credit and car finance
"Adverse credit" (sometimes called bad credit) means your file contains negative entries such as missed payments, defaults, CCJs, an IVA or a past bankruptcy. It does not automatically rule out car finance. Some lenders specialise in considering less-than-perfect credit histories, looking closely at your current affordability as well as your past record. That said, acceptance is never certain and is always decided by the lender based on your individual circumstances. Where finance is offered on an adverse-credit file, the terms may differ from those offered to someone with a stronger history, so it is important to check the total cost and make sure the repayments are comfortably affordable. Finance is always subject to status. If your credit has had problems, using a soft-search eligibility check first lets you explore options with no initial impact on your credit score before anything is recorded.