Lenders always look into the credit history of an individual before they decide to take them as a customer. So this score is what determines if you’re creditworthy or not. This is why it’s crucial that you understand what the average credit score by age is in the UK.

So, stay tuned…

Table of Contents

1. What’s a Credit Score?
2. How Do I Find Out My Credit Score?
3. Does Checking Your Credit Score Lower it?
4. Why is Credit Important in the UK?
5. What are the First Steps to Building Credit in the UK?
6. Average UK Credit Score: A Tale of Ups and Downs
7. Average Credit Score by Age in the UK
8. What’s a Good Credit Score in the UK?
9. Top reasons for bad credit
10. What Are Your Options if You Have a Below-Average Credit Score?
11. Do you need more help dealing with Credit issues?
12. Additional Advice and Guidance
13. Key Points
14. FAQs

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What’s a Credit Score?

This figure is determined by taking into account each person’s financial situation. It assists lenders in determining whether you are a high-risk client. Having a good score makes it easier for you to get authorised for:

Credit cards
Loans
Mortgages
Other items

Therefore, the higher the better. However, this is not that easy.

Some lenders use their own systems in order to build a profile to identify if it’s safe to take you up as a customer. They do this by taking into consideration things that are not listed on your credit score, such as your employment history. So, there is a chance where you might be accepted even if you have a bad score or a good score.

The reason why this is important is because if the credit score is low, this is a strong indication that you need to fix something. This allows you to identify your financial standing. So, if you want to borrow, the first step is to check your credit score. This is because being rejected will damage your report even further.

How Do I Find Out My Credit Score?

You can find out this out through a credit reference agency such as:

Equifax
Experian
TransUnion

Each of them use their own scoring system. So note that the result will be different from each other.

Does Checking Your Credit Score Lower it?

No, this will not have any kind of impact. Checking it is called a soft inquiry. So, this does not leave a mark that lenders will be able to see. However, it will remain visible to you for 12- 24 months.

Why is Credit Important in the UK?

It is a crucial factor in the UK as it is a great way to measure the financial standing of an individual. This is mainly because lenders and banks like to offer money to people who are likely to pay back the money they owe.

Having a good financial history is important in order to get approval for:

Personal loans
Credit cards
Mobile phone contracts
Auto loans
Mortgages
Renting a flat
Access to utility services

In some cases, employers also request to run a credit check on you before they offer a job. But they cannot do this without your permission.

So, note that having a good financial standing is very important. But this is not a reason to worry if you’ve just moved to the UK from another country. It is a slow process. But managing things effectively is the best way to achieve this.

Need more help dealing with your debts?

There are a number of alternative debt solutions available in the UK that you could use to write off some of your priority debts. But keep in mind that choosing the right solution will aid you in writing off some of your debt, while choosing the wrong one will worsen your debt situation.

Here, the key is to determine what debt solution suits your personal financial situation in the best way possible. Fill out below online form to find a reliable solution to your debt issue using the help of our professional MoneyAdvisor team member.

What are the First Steps to Building Credit in the UK?

Starting off is not a difficult task even though it may seem like there’s a long way to go. Here is how you can do it:

Get a UK address: In order to register and start building credit, you should have a permanent address.
Open a Current Account at a Credit Union or a Bank: this part might be a bit tough because you need a permanent address in order to open a bank account. So, it’s best to check if you can open a UK bank account ahead of time from your home country. You should be able to do this with banks such as Citibank or HSBC.
Register vote: one of the best ways to increase your credit score is by getting on the electoral roll. Keep in mind that this option is only available for individuals moving to the county from commonwealth nations such as Canada or Australia.
Start building credit with the help of debt apps and more: using a credit builder app will help build your credit fast if you’re new to the country.
Proof: Show proof of employment and show that you have a steady income and this will allow you to establish credit in the UK.

Average UK Credit Score: A Tale of Ups and Downs

Based on Experian’s data, the nation’s financial health has seen some interesting turns.

Let’s break it down by year:

2019: Average score was 776.
2020: Climbed to 792.
2021: Peaked at 797.
2022: Dropped to 759.

The story gets more intriguing when we look at different cities:

London: Boasts a high score of 893.
Kingston-upon-Hull: On the lower end with 702.

Interestingly, nearly half of UK adults have never checked their credit report. Not checking could mean unseen errors pulling down your score.

Average Credit Score by Age in the UK

The credit score of an individual depends on the agency they’re checking with. However, each of these agencies adopts a similar method when it comes to calculating their figures. Some factors that they take into account include:

Credit utilisation
Length of credit history
Types of credit
Timeliness of debt payments
Other important factors

Different agencies have different score ranges:

Experian: 0-999
Equifax: 0-1000
TransUnion: 0-710

Based on Experian’s data, here’s a snapshot:

18-20 Years: 823
21-25 Years: 792
26-30 Years: 776
31-35 Years: 770
36-40 Years: 779
41-45 Years: 792
46-50 Years: 804
51-55 Years: 819
55+ Years: 863

As you can see above:

People aged 31-35 have the lowest average scores at 770
Those 55 and over enjoy the highest at 863.

What’s a Good Credit Score in the UK?

According to Experian, achieving these scores means easier access to credit and attractive interest rates:

Good Score: Between 881 and 960.
Excellent Score: 961 or above.

However, the below ones might not make it favourable:

Fair: If you have a score between 721 and 880, you will receive a rating of ‘fair’. Individuals in this range will not have much issues when taking credit. However, the possibility of you getting approved solely depends on the lender’s criteria and your personal circumstances.
Bad credit score: anyone who has a score below 720 might face issues when seeking financing.

Top reasons for bad credit

There are many reasons why a person might have a bad financial standing. Some of the main reasons for this include:

Declaring bankruptcy
Having a County Court Judgement (CCJ)
Failing to stick to a credit agreement
Selecting a credit card that’s not suitable
Always making only minimum payments on money owed
No credit history
Identity fraud

What Are Your Options if You Have a Below-Average Credit Score?

Having a good score will make it easier to obtain financing. This is because it is a strong indication that you’re reliable. Due to this, you will be able to get:

Better interest rates or
Higher credit limits.

However, note a credit score is not the only factor a lender considers. When you request for financing, they may even check your:

Financial circumstances
Address history
Income
Credit file

Nevertheless, here are some things you can do to if you have a below average credit score by age in the UK:

Being on the electoral roll can make a huge difference to your financial standing. You can easily register online, and this process will only take around 5 minutes. Keep in mind that if your address changes, you should reregister.

When registering for the electoral roll, you should provide information about yourself, including your

Name
Address

This information is beneficial for lenders as it helps them confirm your identity and address. This might also help you save time on credit applications. So, lenders might not request for much information as they can access them through the electoral roll.

Making regular payments without any delay is a strong indication that you’re reliable. Thus, lenders will know that if they offer you money, you will pay it back responsibly. So they will be more willing to lend to you. However, if you don’t do this on time, lenders will be able to see this. As a result, they will be reluctant to offer you money.

In order to make this easier, consider setting up a direct debit. This will ensure that the money is paid in full and on time.

You can check your report for free with the help of various services. Some also provide recommendations on what you can do to have a better financial standing.

Checking the report regularly will help to ensure that the information is accurate and up to date.
You can also check if there are any old accounts that are showing up on the report. Including the ones you may have closed down or any from an ex-partner.

If you find any error, make sure to dispute it with the agency:

Experian
TransUnion
Equifax

There is also a short 200 word statement called a ‘notice of correction’. This is something you can add to the report and lenders will be able to see it. You can use in order to explain personal circumstances or other factors they should consider.

For example, mention that you failed to pay or paid late because of unemployment or health issues.

Do you need more help dealing with Credit issues?

Sometimes, your credit score can have negative impacts if you have unsettled credits with your creditors. In the UK, there are various alternative debt solutions to consider. Sometimes, you may encounter difficulties in agreeing to the proposed payment plans from your credit-issuing agency, especially if they are financially burdensome.

In such situations, we strongly advise you to explore alternative debt solutions that can address your debt-related concerns effectively.

However, it’s crucial to keep in mind that each of these debt solutions has specific eligibility criteria. Selecting the right one can lead to debt resolution, while choosing the wrong one could worsen your financial circumstances.

Hence, seeking guidance from a professional debt advisor is a prudent step to take if you find it challenging to determine the most suitable debt solution on your own.

If you need personalised assistance based on your current financial situation, please feel free to complete our online form by clicking here to receive help from our Money Advisor Team.

Additional Advice and Guidance

When it comes to situations like these, debt charities are very helpful. There are many debt charities in the UK that you can contact.

Some of these include:

National Debtline.
Citizens Advice.
StepChange.

Key Points

Some lenders use their own systems in order to build a profile to identify if it’s safe to have you as a customer.
Having a good financial history is crucial in order to get approval for personal loans and mortgages.
The average UK credit score in 2022 was 759.
Different agencies have different score ranges.
Having a good score will make it easier to obtain financing. This is because it is a strong indication that you’re reliable.
A good score is between 881 and 960.
An excellent score is 961 or above.
In order to improve your credit score, consider registering for electoral role, make regular payments on time, and check for any errors or mistakes.

FAQs