What is a Credit Score?
What Is a Credit Score? A credit score is a number that helps show how you have managed borrowing in the past. It is based on information held in your credit report, such as loans, credit cards, overdrafts, payment history, address history, and any missed payments or financial difficulties.
For mortgage applicants, your credit score can influence how a lender views your application. It does not decide everything on its own, but it can affect whether you are accepted, how much deposit you may need, and which interest rates or lenders may be available.
Connect Experts helps you find a mortgage adviser who can review your circumstances and explain how your credit profile may affect your next step. You can also use our platform to find a mortgage adviser by location, language, gender, and area of expertise.
What Is a Credit Score?
A credit score is a rating based on your credit history. It helps lenders understand how you have handled borrowing, repayments, and financial commitments.
A higher score may suggest lower risk to a lender. A lower score may suggest that a lender should look more carefully at your circumstances.
Your credit score is only one part of a mortgage decision. Lenders also look at your income, deposit, affordability, employment type, existing debts, and the property you want to buy.
Why Your Credit Score Matters for a Mortgage
When you apply for a mortgage, a lender wants to know whether the loan is affordable and whether you are likely to keep up with repayments.
Your credit score helps lenders assess your financial behaviour. It may influence:
- Whether your application is accepted
- Which lenders may consider you
- The interest rate you are offered
- The deposit you may need
- Whether extra checks are required
- Whether a specialist lender may be more suitable
A strong credit score can support your application, especially when combined with stable income, manageable outgoings, and a suitable deposit.
A lower credit score does not always mean you cannot get a mortgage. It may mean your options are more limited or that your application needs to be packaged more carefully. If you have missed payments, defaults, CCJs, or other credit issues, you may benefit from speaking with advisers who support credit issues.
What Is a Credit Report?
A credit report is the detailed record behind your credit score. It contains information that credit reference agencies hold about your borrowing and repayment history.
Your credit report may include:
- Your name and date of birth
- Current and previous addresses
- Electoral roll information
- Credit cards, loans, overdrafts, and finance agreements
- Mortgage account history, where relevant
- Payment history
- Credit limits and balances
- Missed or late payments
- Defaults
- County Court Judgements, also known as CCJs
- Insolvency records, such as bankruptcy or individual voluntary arrangements
- Financial links with another person, such as a joint account or joint mortgage
- Recent credit searches
A lender may use this information alongside its own criteria when deciding whether to approve your application.
Credit Score vs Credit Report: What Is the Difference?
Your credit score is a number or rating. Your credit report is the detailed information used to help calculate that score.
Think of the credit score as a summary. The credit report is the evidence behind the summary.
For mortgage applications, the report can matter more than the number alone. A lender may want to understand what happened, when it happened, how serious it was, and whether your finances have improved since then.
For example, one missed payment from several years ago may be treated differently from recent missed payments on several accounts.
Who Calculates Credit Scores in the UK?
In the UK, the main credit reference agencies are:
- Experian
- Equifax
- TransUnion
Each agency uses its own scoring range and method. This means you may have a different score with each agency.
There is no single universal UK credit score. A score that looks good with one agency may not mean the same thing with another agency.
Lenders may use one or more credit reference agencies, but they also apply their own lending criteria. This is why your credit score should be seen as a useful guide, not a guaranteed mortgage decision.
What Is Considered a Good Credit Score?
A good credit score depends on which credit reference agency you are checking. Each agency uses its own scale.
In general, the higher your score is within that agency’s range, the stronger your credit profile may appear.
However, mortgage lenders do not rely on your score alone. They also review:
- Your income
- Your employment status
- Your deposit
- Your spending commitments
- Your credit commitments
- Your loan-to-value ratio
- Your recent credit conduct
- The property type
- Whether the mortgage is affordable
Your loan-to-value ratio, often called LTV, compares the mortgage amount with the property value. A larger deposit usually means a lower LTV, which may reduce lender risk. If you are buying with a smaller deposit, you may want to read our guide to a low deposit mortgage.
How Credit Scores Can Affect Mortgage Affordability
Mortgage affordability is different from your credit score, but both are important.
Your credit score looks at how you have managed credit. Mortgage affordability looks at whether you can afford the mortgage now and in the future.
A lender may review:
- Your income before and after tax
- Regular bills and household spending
- Loans, credit cards, car finance, and other commitments
- Childcare or maintenance payments
- Deposit size
- Mortgage term
- Interest rate
- Credit history
- Future financial changes
A strong credit score may help, but it will not replace affordability checks. If your monthly commitments are high, your borrowing amount may be lower even if your credit score is good.
You can learn more in our guide to mortgage affordability.
What Affects Your Credit Score?
Several factors can affect your credit score. The exact calculation varies between credit reference agencies, but common factors include the following.
Payment History
Paying bills and credit commitments on time is one of the most important factors in your credit score. Missed payments can stay on your credit report for several years and may affect how lenders assess you.
Credit Utilisation
Credit utilisation is how much of your available credit you use. For example, if you have a credit card limit of £2,000 and your balance is £1,000, your utilisation is 50 per cent on that card.
High utilisation may suggest financial pressure. Keeping balances lower can support a healthier credit profile.
Electoral Roll Registration
Being registered on the electoral roll can help confirm your identity and address. This can make it easier for lenders to verify your details.
Length of Credit History
A longer record of well-managed credit can support your profile. If you have very little credit history, lenders may have less evidence of how you manage repayments.
Recent Credit Applications
Applying for several credit products in a short period can affect your score. It may suggest that you are relying on borrowing or experiencing financial pressure.
Defaults, CCJs, or Insolvency
Defaults, County Court Judgements, bankruptcy, and individual voluntary arrangements can make borrowing more difficult. The date, amount, reason, and whether the debt has been settled may all be relevant.
Financial Associations
If you have a joint account, joint loan, or joint mortgage with another person, you may be financially linked. Lenders may consider your credit history when you apply for joint borrowing.
How to Check Your Credit Score
You can check your credit report through the main UK credit reference agencies: Experian, Equifax, and TransUnion.
You should check all three if possible, because the information held by each agency may differ. One lender may report to one agency, while another lender may report to a different agency.
When checking your credit file, look for:
- Incorrect addresses
- Accounts you do not recognise
- Wrong payment markers
- Old financial associations
- Incorrect defaults
- Settled debts still showing as unpaid
- Signs of fraud or identity misuse
If you find an error, raise a dispute with the credit reference agency. You may also need to contact the lender or company that supplied the information.
Does Checking Your Credit Score Lower It?
Checking your own credit score does not usually lower it. This is normally treated as a soft search.
A soft search may be used when you check your own report or when a lender carries out an eligibility check. Soft searches are usually visible to you, but not to other lenders.
A hard search is different. This usually happens when you submit a full application for credit, such as a mortgage, a loan, a credit card, or a car finance agreement.
Hard searches can be visible to other lenders and may affect your score, especially if several applications are made in a short time.
Before applying for a Mortgage in Principle, ask whether the lender or adviser will conduct a soft or hard search.
Can You Get a Mortgage With a Low Credit Score?
Yes, it may be possible to get a mortgage with a low credit score, but it depends on the details.
Lenders may consider:
- What caused the low score
- Whether the issue was recent or historic
- Whether missed payments have been brought up to date
- Whether defaults or CCJs have been satisfied
- Your income and affordability
- Your deposit size
- The type of property
- Your current financial conduct
A low credit score may reduce the number of lenders available. It may also mean you need a larger deposit or a specialist lender.
If your credit history includes missed payments, defaults, CCJs, debt management, or limited credit history, you can use Connect Experts to find advisers who can help with credit issues.
How to Improve Your Credit Score Before a Mortgage
Improving your credit score takes time, but consistent steps can help strengthen your position.
Pay Every Bill on Time
Set up direct debits or reminders for credit cards, loans, utilities, mobile phone contracts, and other regular payments.
Reduce Credit Card Balances
Try to reduce balances where possible. Lower credit utilisation can help show that you are not relying heavily on available credit.
Avoid Unnecessary Credit Applications
Do not apply for several credit products close together unless you need to. Multiple hard searches in a short time can weaken your profile.
Check Your Credit Report for Errors
Review your credit reports before applying for a mortgage. Correcting errors early may prevent delays later.
Register on the Electoral Roll
If you are eligible, registering on the electoral roll can help lenders confirm your identity and address.
Separate Old Financial Links
If you are no longer financially connected to someone, ask the credit reference agencies whether you can remove the financial association.
Keep Older Well-Managed Accounts Open Where Appropriate
A longer history of responsible borrowing can sometimes support your profile. However, this depends on the type of account and your wider financial position.
Speak to an Adviser Before Applying
A mortgage adviser can review your situation before you submit a full application. This may help you avoid unnecessary hard searches and identify lenders more likely to consider your circumstances.
You can find a mortgage adviser through Connect Experts.
Credit Score Checklist Before Applying for a Mortgage
Before you apply for a mortgage, check the following:
- Have you reviewed your Experian, Equifax, and TransUnion reports?
- Are your addresses correct?
- Are you registered on the electoral roll, if eligible?
- Are all accounts shown accurately?
- Are any old debts marked correctly?
- Are financial associations still relevant?
- Have you reduced unnecessary credit balances?
- Have you avoided recent unnecessary credit applications?
- Do you know whether your Mortgage in Principle will involve a soft or hard search?
- Have you checked your affordability and credit score?
If you are a first-time buyer, you can also connect with a first-time buyer mortgage adviser.
How Connect Experts Can Help
Connect Experts is a UK mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or firm you choose.
Our platform helps you search for mortgage advisers by:
- Location
- Language
- Gender
- Mortgage type
- Area of expertise
This can be helpful if you want to discuss your credit score, mortgage affordability, deposit position, or lender options with someone who understands your circumstances.
You can start by visiting Connect Experts or by using our ” Find a Mortgage Adviser service.
Can You Get a Mortgage With a Low Credit Score?
Yes, it may be possible to get a mortgage with a low credit score, but it depends on the details.
Lenders may consider:
- What caused the low score
- Whether the issue was recent or historic
- Whether missed payments have been brought up to date
- Whether defaults or CCJs have been satisfied
- Your income and affordability
- Your deposit size
- The type of property
- Your current financial conduct
A low credit score may reduce the number of lenders available. It may also mean you need a larger deposit or a specialist lender.
If your credit history includes missed payments, defaults, CCJs, debt management, or limited credit history, you can use Connect Experts to find advisers who can help with credit issues.
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FAQ: What is a Credit Score?
| Question | Answer |
|---|---|
| What is a credit score? | A credit score is a number that reflects how you have managed borrowing and repayments. It is based on information in your credit report. |
| Why is a credit score important for a mortgage? | A credit score can affect how lenders view your mortgage application. It may influence lender choice, rates, deposit requirements, and approval chances. |
| Is a credit score the same as a credit report? | No. A credit score is a summary number or rating. A credit report is the detailed record behind it. |
| Which credit reference agencies are used in the UK? | The main UK credit reference agencies are Experian, Equifax, and TransUnion. |
| Does checking my credit score lower it? | Checking your own credit score is usually a soft search and should not lower your score. |
| What is a hard credit search? | A hard credit search usually happens when you submit a full credit application. It can be visible to other lenders and may affect your score. |
| Can I get a mortgage with a low credit score? | It may be possible, depending on your wider circumstances. Lenders may look at your income, deposit, affordability, credit history, and whether any issues have been resolved. |
| How can I improve my credit score before applying for a mortgage? | Pay bills on time, reduce credit balances, check your report for errors, register on the electoral roll if eligible, avoid unnecessary credit applications, and speak to an adviser before applying. |
| Does a Mortgage in Principle affect my credit score? | Some Mortgage in Principle checks use a soft search, while others may use a hard search. Always check before proceeding. |
| Should I check all three credit reports? | Yes. Experian, Equifax, and TransUnion may hold different information, so checking all three can give you a clearer view before applying for a mortgage. |
Important Information
Connect Experts is a mortgage adviser directory and matching platform. We do not provide mortgage advice directly. Advice is provided by the adviser or company you choose.
We are an FCA-approved broker network and not a lender. Advisers may have access to a range of lenders. If a lender is introduced, commission may be received after completion. The commission amount may vary by lender and product, but it should not affect the amount you pay under your credit agreement.
A fee may be payable for arranging your mortgage. Your adviser will confirm the amount before you choose to proceed.
Your home or property may be repossessed if you do not keep up repayments on your mortgage or loans secured on it.