Merryn Talks Money How Much Does Your Credit Score Matter?
No Single Credit Score
- Credit scores are not a single unified number; they vary by credit reference agency.
- Each agency like Experian, Equifax, and TransUnion uses different scoring scales and bandings.
Start Building Credit Early
- Get on the electoral roll to start building your credit history immediately.
- Open a bank account and consider a credit card to develop positive credit information over time.
How To Build and Boost Your Credit Score From Scratch
Your credit score is not a single universal number but varies by agency—Experian scores out of 999, Equifax out of 1000, and TransUnion out of 710. The score summarizes how lenders perceive your credit management based on factors like payment history, current debt, and length of credit history.
To build a credit score from scratch, start by registering on the electoral roll and maintaining a bank account without issues. Then, responsibly use a credit card by making small regular purchases and paying the balance off in full each month to avoid interest.
Avoid applying for multiple types of credit in a short time, especially before big applications like a mortgage, as this can negatively impact your score. Consistently paying bills on time and managing credit accounts well is key to improving or repairing your credit score over time.