When applying for things like mortgages and credit cards, your credit score is normally a significant factor in the process. Usually with credit scores, the bigger the number normally means the better the score. Read on to find out more about credit scores and how to boost them.
What is the highest credit score?
Different credit scoring companies will use different scoring ranges, so there isn’t a uniform highest credit score.
Although a high credit score can mean people have better chances of being approved by lenders for credit, it is not necessary to have a ‘perfect’ credit score to make a successful application.
In the UK there are three major credit reporting organisations people tend to use to check their credit scores: Experian, TransUnion and Equifax.
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The highest Equifax credit score is 700, while Experian credit scores range from 0 to 999.
The TransUnion highest credit score available is 710.
Credit reference agencies work with lenders, banks and building societies when determining whether someone applying for credit is likely to pay it back.
You can access your full credit score and reports via any of the main credit reference agencies for free.
Some also offer a subscription service which can tell you more about your credit score.
The Money Advice Service explains: “If you sign up to a subscription membership with one of the main credit agencies you might be able to get more up-to-date information on your credit history.
“Some of the memberships might also give you access to companies that can look into your file.
“But remember to set up a reminder to cancel your membership if you’re on a free trial – as you don’t want to pay the monthly subscription when it ends.”
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How can you boost your credit score?
As well as telling you what your credit score is, credit reporting agencies can also outline ways you might be able to improve your credit score.
Credit reports may also be able to show you what factors might be dragging your credit score down.
If you find your credit score isn’t high, there are a number of ways you can boost it.
The Money Advice Service explains some of the ways people can improve their credit score, including:
- Register on the electoral roll
- Check for mistakes on your credit file
- Pay bills on time
- Check for fraudulent activity
- Check if you’re linked to another person
- Avoid County Court Judgements (CCJs)
- Deal with high levels of existing debt
- Lenders like to see people have lived at one address for a considerable period of time
- Keep credit utilisation low