What is a credit score and how you can check it for free

Basically, your credit score will be like a CV of your financial status. If you are going to apply for a mortgage or other loans, the mortgage lender will check your credit score first. It will help you assess that whether the amount you are borrowing from them, will you be able to repay on time or not?

Before applying for any loan, or just casually you want to check your credit score then there are three UK-based companies that will help you in this. Each company will have its own scale of calculating your credit score but it is going to be totally free.

How is your credit score gets affected by your actions?

Your credit score gets affected by your credit use. If you don’t pay your bill on time then you are going to lose 130 points according to Experian. At the same time, you can earn 90 points if you use your credit card less than 30% of the credit limit.

When lenders will check your credit history they will look for different factors like how you were with your bills and other payments. Every company will have its own assessment criteria and they will calculate your credit score according to their criteria.

If you are not on an electric roll or you are making late payments, it will definitely impact your credit score. Most of the time the loan lenders check your recent financial circumstances. A payment that you didn’t make on time the year before is not going to scupper your chances of getting your loan application approves.

The three agencies

You can get your credit history from any credit reference agency but it won’t offer you a complete report on your credit score.

Here are the three agencies based in the UK that will certainly help you to calculate your credit score without costing you a single penny for this process:

  1. Experian

Experian is the number one credit reference agency. It offers you a trial period of 30 days so you can use their services and make your mind whether you are going to them in the future or not. You will get your credit score report and an email notifying you when even a slight change takes place on your file.

You can make a free account on Experian to get the free trial service. 0nce your trial period is over you will have to pay £14.99 a month.

  1. Equifax

Equifax offers 30 days free trial period in which they will keep monitoring your credit score file. After the trial period, this service will cost you about £7.95 a month.

  1. TransUnion

You can get your credit score checked for free from TransUnion. You will get a free subscription of 30 days just like Experian and Equifax. After the trial period is over you will get charged £14.99 a month if you want to keep this service.

The final word

It would be better if you have a higher credit score because it will help you to get the best credit deals. Your credit score has to be above 560 because below then 560 is going to be counted as a very poor credit score. If you are a bit confused that how you can improve your credit score because you might want to apply for a mortgage in the future then you can contact us whenever you want. You can get all the guidance you were looking for from us.