In this brief blog, we are going to discuss the  Lowest credit score based on different scenarios.

Why are credit scores important?

Credit scores are important as mortgage lenders and other entities use your credit score and history to determine your creditworthiness.

If your credit score is low or you have no credit history then you may find that many lenders are unwilling to lend to you. If there are lenders willing to lend to you then you may have to pay very high-interest rates.

Having the lowest credit score possible will therefore not be good for your financial wellbeing and you should look to build credit to avoid having the lowest credit score.

The lowest credit score you can get in the UK is zero but as the three main credit bureaus in the UK all have a different credit scoring range. There are four credit bureaus in the UK but there are three main ones

The UK credit bureaus are:

Equifax

Experian

Transunion

& Crediva

If you are wondering if you have the lowest credit score possible then you could request your credit report with any of the credit providers. Some of the credit providers may charge you for this but you can also get your credit score for free by using a statutory credit check,

A statutory credit report is a credit report which you get for free from each of the credit bureaus in the UK. You can get this report on-demand, once a year

The four different credit bureaus all have different credit scoring ranges which means that they all use a different scale.

Equifax- 

Equifax has a credit scoring range between zero and seven hundred (0-700). The lowest credit score you can have on your Equifax credit report in the UK is zero. On your Equifax credit score, a score below 300 is very bad, an Equifax credit score above 475 is good and a score above 900 is amazing.

Experian- 

Experian has a credit scoring range between zero and nine hundred and ninety-nine. (0-999). The lowest credit score you can have on your Experian credit report in the UK is zero. Anything above961 on your Experian credit score is very good and anything below 560 on your Experian credit score is bad. 

Transunion-

Transunion has a credit scoring range between zero and seven hundred and ten (0-710). The lowest credit score you can have on your Transunion credit report in the UK is zero.

What is the lowest possible credit score?

In the Uk, the lowest credit score you can have is actually 0. This is usually when you have very bad credit due to defaults, missed credit repayments, high credit utilization etc.

Why does a low credit score matter?

Having a low credit score is very bad as you may find it hard to get accepted for credit and any credit providers which offer you credit may offer credit at interest rates which are very high.

Does a low credit score mean automatic decline?

A low credit score does not mean an automatic decline but many lenders now perform eligibility tests through their online eligibility systems which means that there will be an automatic decline. Some lenders such as mortgage lenders will look at your credit report rather than just using an automatic system.

How to improve your credit score?

If you have a low credit score then you can improve it by doing the below:

Get a credit builder credit card

Get a secured credit card

Get a credit builder loan

Avoid missing any credit repayments

Have a credit utilisation of less than 30%

Get on the electoral roll

Have a credit account open for as long as possible

In this blog we discussed the lowest credit score for each credit bureau in the UK and what could be done about low credit scores.

John Bate

John has 22 years of experience in financial services. This spans across financial research, financial services (As a qualified mortgage broker and underwriter), financial trading and sales at global investment banks. While working as a publishing research analyst, he covered European bank credit and advised institutional clients on investment strategies at both JP Morgan and Societe Generale. John has passed all three levels of the CFA (Chartered Financial Analyst) programme.