Where Can I Do a Free Credit Score Check?

Ah, that daunting number that represents your creditworthiness as a borrower, the credit score. This number may seem insignificant, but it is a big factor when lenders assess your loan applications. Your past financial behaviour determines your credit score, and it will dramatically improve your chances of getting any type of credit approved.

Why is my credit score important?

If you want to obtain a mortgage, credit card, loan, and so much more, it is crucial to ensure that your credit report is in excellent standing. The value of having a good credit report is only increasing as the cost of living soars. Thankfully, accessing your credit report is free of charge. Let’s explore where you can perform a free credit score check and find out how to check your credit score for free! 🎁

How do I check my credit score for free?

Equifax, Experian, and TransUnion are the credit reporting companies with access to your credit history. You can use Clearscore for Equifax, which will give you free access to your Equifax credit score. For Experian, the Money Saving Expert Credit Club gives you free access to your Experian report, and Credit Karma allows you to see your TransUnion report for free. 

It's simple and totally free to check your credit report. Before we go any further, bear in mind that you should never have to pay to check your credit report. If you’ve come across a website that asks you for payment in exchange for a consultation of your credit score, click off the page immediately. 

How does a credit score work?

Your financial history is the basis for your credit score. Credit reference companies determine it based on how successfully you manage your past financial accounts. Your score is not constant; it might increase or decrease based on how you handle your loans and general credit. 

Your credit score is one of the factors the lender will evaluate when determining whether to accept or reject your application when you ask for credit, such as a loan, mortgage, or credit card. Additionally, it will affect the loan or interest rate that the lender provides you. Having a strong credit score can give you much better options when asking for credit. It's important to note that your credit score impacts more than just your finances.

Why do lenders check credit scores?

A high credit score will give a lender confidence that you'll repay whatever you borrow. It serves as a gauge of how responsibly you manage your finances. A strong credit score increases your chances of being approved for credit and your chances of receiving loans and credit cards with more appealing interest rates.

It is best to check all three credit reports at least once a year as a general practice. Don't stress about checking your credit report too often. Only you and the credit reference agency will be aware of how frequent your checks are, and they won’t be noted on the report. No need to type in “check credit score free uk” in Google every week. Just bookmark the three main websites and come back to them regularly. 

Why is my credit score low?

Wonder what can affect your credit score? Poor financial management in the past, including missing credit card payments, unpaid utility bills, or even bankruptcy, can lead to a low credit score.

Your possibilities for obtaining credit may be limited if you have a low credit score since a lender might view you as a higher risk. But it's not the end of the world if your credit score is low. There are several things you can do to improve it. If you have a low credit score, you can check the following:

• All your addresses are correct for any different credit cards and/or loans you have
• You have fought any unfair defaults
• That you are financially de-linked from any irrelevant joint accounts
• That you don’t apply to too many loans in a short period of time
• That you have cancelled unused credit and store cards

Knowing your credit score allows you to monitor its health and ensure it is suitable for use when you need it most. You can find out where you stand when applying for a credit card, loan, or mortgage by checking your score for free.

Is my credit score good?

An "excellent" score is one that falls between 881 and 960, and a "fair" score falls between 721 and 880, which is the average here in the UK. You may find it more difficult to obtain certain services or borrow money if your credit score is low. A "bad" score is one between 561 and 720, and a "very poor" score is one between 0 and 560. But keep in mind that different lenders may have different ideas of what their ideal client looks like, and this may affect how they determine your credit score.

How are credit scores calculated?

Credit rating agencies calculate credit scores in different ways. The range of the Experian score for example is 0-999. It is based on details in your Experian Credit Report, including how frequently you ask for credit, how much you owe, and whether or not you pay your bills on time.

If your credit report contains information that implies to lenders that you are unlikely to manage credit responsibly, such as past late payments and defaults, you will lose points. Gaining points for traits that lenders typically consider favourable includes having a history of on-time payments and being registered to vote.

Takeaway

There are plenty of steps you can take if your credit score isn't as high as you'd like. Start by registering in the electoral roll so that lenders can verify your name and address if you ever apply for a loan. A simple step like this can help increase your credit score by a few points. This will make your credit score go up.

Also, paying off more than the minimum on your credit cards each month demonstrates to lenders that you are effectively managing your debt, even if it may be easier said than done. Your credit score will increase eventually, and lenders will be more likely to view you as a dependable potential customer because you've demonstrated that you can manage your credit responsibly. 😊🚗

Ready to finance your car? 

If you're already confident about your credit score, then what are you waiting for? You can get your new car sooner than you think. Carmoola is revolutionising the way car finance works. Simply download our app and start the application process, and you'll know the result instantly. Got questions? No worries! We're here to answer them, so feel free to reach out to us!