Changing and developing living conditions affect many areas in our lives. This interaction is most noticeably reflected in the economy. For this reason, many people feel obliged to deal with credit. Because the budgets of people and the developing life and changing living conditions do not change at the same rate. However, there are some criteria for obtaining credit. One of the main criteria is credit score. The two elements of credit are mixed with each other; credit score and credit report.
- Credit report; it includes any errors that might prevent your chances of getting credit, and you need to check your credit report to protect your financial health.
- Credit score; informs you whether you have paid your credit installments on time and shows your credit risk.
A point must be noted here; credit score and credit report are not the same stuff. Credit reports are compiled by 3 credit reference agencies (Equifax, Experian and Callcredit). These credit reports usually do not include credit score. In addition to the credit report, you can purchase your credit score from three main credit reference agencies or other providers that work with the FICO scoring system.
What affects your credit score?
The first thing to know about the credit score is that it is not universal. Your credit score depends on how responsible you use your credit institutions. For example; if you don’t pay your credit bill on time, your credit score will drop(you will lose 130 points at Experian), but if you use a certain percentage of your credit card limit, your credit score will drop less (if you use 30% of your credit card limit at Experian, your credit score will decrease by 90 points).
Like creditors, credit reference agencies have their own system of credit assessment and take into account different criteria when calculating your credit score. some things will also negatively affect your credit score, regardless of credit reference agencies. For example; factors such as making a delayed payment or not being on the election commission. Creditors are most your interested in current financial situation. Therefore, it is not possible to increase your chances of getting a loan due to missed payment a few years ago.
How to check your credit score for free?
You can now legally access your credit reports with credit reference agencies free of charge. In these credit reports, you can access a snapshot of your credit history, but your credit score is not included in the credit reports. Therefore, you can get more comprehensive services by paying monthly fees through 3 main credit reference agencies, Experian, Equifax and Callcredit. With this subscription, you can access your credit reports unlimitedly or use extra features such as warning or score when big changes are made to your report. However, you can now access your credit score and credit reports without paying or subscribing.
- How to check your credit score from Experian;
Firstly, this credit reference agency offers a 30-day free trial for new customers to access your credit score, credit reports, and email alerts about any changes to their files. When the trial ends, you have to pay a monthly usage fee of £ 14.99. This is CreditExpert service.
Secondly, this is CreditMatcher service. With this service, users can learn and compare credit opportunities based on their financial profiles. This service also helps them shop to see how they can make money. However, with this service, you will not be able to access your credit report as in CreditExpert.
Finally, if you want to learn your credit report and earn free score forever, you can sign up for the Money Saving Expert Credit Club. With this membership, you will not be notified of any changes to your credit report, as in CreditExpert.
- How to check your credit score from Equifax/ClearScore;
Equifax, like Experian, offers full credit tracking service with a 30-day free trial. You can learn your credit score free of charge during this time. Once the free trial is over, you will have to pay £ 9.95 per month.
Another service you can use as an alternative to this service is ClearScore. With ClearScore, you can receive your Equifax credit report and earn free lifetime score.
- How to check your credit score from TransUnion(formerly CallCredit)/Noddle;
With TransUnion you can access your credit report and earn free points with the Noodle service. TransUnion also advertises credit cards and credits that are likely to be accepted.
By registering with the CheckMyFile service, you have 30 days of free access to all information held by both Equifax and TransUnion. During this period, you can learn your credit score free of charge from both credit reference agencies. When the expiry date is over, you will have to pay £ 14.99 per month.
What is a good your credit score?
Each credit reference agency uses its own credit scoring system. The system of 3 credit reference agencies is as follows;
- Your credit score for Experian;
Your credit score can be up to 999 at Experian. Very poor: 0-560, Poor: 561-720, Fair: 721-880, Good 881-960, Excellent: 961-999.
- Your credit score for TransUnion;
Your credit score can be up to 710 at TransUnion. Very poor: 0-550, Poor: 551-565, Fair: 566-603, Good 604-627, Excellent: 628-710.
- Your credit score for Equifax;
Your credit score can be up to 700 at Equifax. Very poor: 0-278, Poor: 279-366, Fair: 367-419, Good 420-466, Excellent: 467-700.