A credit score is a tool that allows lenders to get an idea of how reliable you are, based on your financial history and spending habits. Data about your financial history is collected and can be analysed in your credit report and this is used to calculate your score (although lenders may use other metrics to create a credit score). Its purpose is to help lenders decide whether you qualify for a loan and if so, what interest rates they will offer you. If you have a low score, you may be rejected for loan and credit card applications, or face higher fees and rates.
There isn’t a single determined answer for what the brackets are between a ‘good’ and a ‘bad’ credit score, as different credit reference agencies, banks and lenders will all score you differently. However, scores will generally range from 300 – 999, and a higher score is always better. Scores of 650 and above will generally be considered good, whereas lower than 580 may be viewed as a poor score. Anything in between is considered fair but could still be improved.
Morses Club PLC (LON:MCL) is an established, relationship-driven consumer finance provider offering a range of credit products and delivering exceptional services to customers in the non-standard finance market.