We all know we should work to have a good credit rating, but many of us don’t really understand what our credit score really is or how it is worked out. With a better understanding of this, you will be better able to understand how to have a strong score and what it means if you don’t. 

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What is a credit score?

A credit score is a number that summarizes your credit information in a credit report. The number you have will reflect how likely you are that you will skip out on a loan or a credit obligation in the future. 

Why don’t I have a credit score?

Credit scoring can only happen with enough credit information. With little to no credit history, you won’t have a credit score available. 

What are score factors? 

Score factors are provided with your credit score to explain how different items in your credit history have impacted your overall score. This can help you to understand what has had the biggest impact, giving you a priority for things to fix. 

How often do credit scores change?

Your score will change as your report changes, meaning it can change all the time as new information is added to your credit report. 

What is the credit score range? 

There are different credit scores with different ranges. Two different scores can represent the same risk level, as different agencies and lenders calculate their ranges a little differently. Your Experian score is the most helpful for you, as they will provide an explanation of what the score they have given you means to lenders and how they view your worthiness for credit. A good score with Experian means you’ll have a good score with lenders, even with a different method of rating. 

Does debt consolidation change your credit score? 

Does consolidation help credit score? Debt consolidation can help or hurt your credit score, depending on the method you use and how well you keep up with your repayment plan. Speak to a credit counselor to make sure you are making the right choice, and make sure you can keep up any monthly repayments to avoid further damaging your credit score. 

What is a good credit score?

A good credit score depends on the scoring system used by the lender in question. You can get a clearer idea of whether your score is good or not, by getting a score and report from Experian, which will help you understand your score. 

What information goes into calculating my credit score?

Credit scores use information from three main areas of your credit report. It uses your account information (including credit card, mortgages, and student loans), public records (such as bankruptcies or CCJs), and inquiries (requests by lenders to view your credit). Personal information like your gender, race, where you live, and your marital status are not taken into account. 

Does having too many credit cards affect my credit score?

Too many credit cards with either high balances or a lot of credit available can make you seem like a higher risk and can impact your score.