What is a Good Credit Score?

In the UK, credit scores work differently than in the US, with three main agencies: Experian (0-999), Equifax (0-700), and TransUnion (0-710). To boost your UK credit score: 1) Register on the electoral roll at your current address, 2) Pay all bills on time including utilities and mobile phone contracts, 3) Keep credit utilization below 25% of available limits, 4) Don't apply for multiple credit products in short periods, 5) Check your credit reports regularly for errors and dispute them, 6) Consider a credit-builder card if you have limited credit history, 7) Show stability by staying at the same address and job for longer periods, and 8) Use services like Experian Boost to include positive payment history from bank accounts, streaming services, and other regular payments.

The most damaging factors to your credit score are: 1) Payment history issues (35% of your score) - late payments, missed payments, defaults, charge-offs, and bankruptcies, 2) High credit utilization ratios above 30%, especially above 90%, 3) Debt collections and judgments against you, 4) Foreclosures and repossessions, 5) Bankruptcy filings (Chapter 7 or 13), 6) Hard inquiries in large numbers over short periods, and 7) Closing old credit accounts which reduces your credit history length. Among these, missed payments and defaults have the most immediate and severe impact, potentially dropping your score by 60-100+ points depending on your starting score and credit profile.

Yes, you can absolutely repair your credit yourself - and it's often the most cost-effective approach. Here's how: 1) Get free credit reports from all three bureaus annually at annualcreditreport.com, 2) Review reports carefully for errors, outdated information, or fraudulent accounts, 3) Dispute any inaccuracies in writing with detailed documentation, 4) Pay down high credit card balances to reduce utilization, 5) Set up automatic payments to ensure you never miss due dates, 6) Don't close old credit cards unless they have high annual fees, 7) Consider becoming an authorized user on a family member's account with good payment history, and 8) Be patient - credit repair takes 3-6 months to show significant results. You only need professional help if you're dealing with complex issues like identity theft or legal matters.

Several factors can cause your credit score to drop despite making on-time payments: 1) Increased credit utilization - if your balances have grown relative to your credit limits, 2) Credit limit decreases by your card issuers due to economic conditions or changes in your credit profile, 3) Closed accounts reducing your total available credit, 4) Natural aging of positive payment history (older positive marks have less impact), 5) New hard inquiries from recent credit applications, 6) Changes in your credit mix (closing installment loans while keeping only credit cards), 7) Errors on your credit report that need to be disputed, and 8) Identity theft or fraudulent accounts opened in your name. Check your credit reports to identify the specific cause and take appropriate action.

A realistically good credit score depends on your goals and current situation. For most people: 1) 670-739 is considered 'Good' and qualifies you for most credit products with reasonable terms, 2) 740+ is 'Very Good' and gets you competitive rates on loans and better credit card offers, 3) 800+ is 'Excellent' but the practical benefits over 740 are often minimal. For specific goals: Auto loans - 650+ gets decent rates, mortgages - 620+ for conventional loans (though 740+ gets the best rates), credit cards - 650+ for decent options, 720+ for premium rewards cards. The median US credit score is around 711, so anything above 700 puts you ahead of average. Focus on reaching 740+ for the best practical benefits, as the difference between 750 and 850 is often negligible in real-world lending decisions.