What Is a Bad Credit Score UK

Learn what counts as a bad credit score in the UK, how it affects your borrowing options, and what steps you can take to improve it

What Is a Bad Credit Score UK

Your credit score plays a crucial role in your financial life. It influences whether you’re approved for credit cards, loans, mortgages and even some mobile phone contracts. But if your credit score is low, you may face higher interest rates, rejections or stricter terms. So what exactly counts as a bad credit score in the UK, and what can you do about it?

In this article, we’ll explain what a bad credit score is, how it’s defined by each of the UK’s credit reference agencies, what causes it, and how you can begin to turn it around.

What Is a Credit Score

A credit score is a number that reflects how likely you are to repay credit. It is calculated using your financial history, including how much you owe, whether you pay on time, and how long you've had credit accounts.

In the UK, there are three main credit reference agencies:

  • Experian (scores range from 0 to 999)

  • Equifax (scores range from 0 to 1000)

  • TransUnion (scores range from 0 to 710)

Each uses its own scoring model and classification of what’s considered poor or excellent, but all assess similar financial behaviours.

What Is a Bad Credit Score

Here’s how each credit reference agency defines a bad or poor credit score:

Experian (0 to 999):

  • Very Poor: 0 to 560

  • Poor: 561 to 720

Equifax (0 to 1000):

  • Very Poor: 0 to 438

  • Poor: 439 to 530

TransUnion (0 to 710):

  • Very Poor: 0 to 550

  • Poor: 551 to 565

If your score falls within these ranges, lenders may view you as high-risk. This could mean your applications are rejected or that you’re only offered high-interest credit or products with stricter conditions.

What Causes a Bad Credit Score

There are several reasons your credit score might be classified as poor:

  • Missed or late payments on credit cards, loans, or household bills

  • Defaults or County Court Judgments (CCJs)

  • High credit card balances or maxed-out accounts

  • Frequent credit applications in a short period

  • Being in an Individual Voluntary Arrangement (IVA) or having declared bankruptcy

  • Not being registered on the electoral roll

  • Limited or no credit history

  • Financial links to someone with bad credit, such as a joint account

Some of these factors cause short-term dips, while others can affect your score for years.

How Bad Credit Affects You

Having a bad credit score can limit your access to financial products and increase your borrowing costs. You may:

  • Be rejected for credit cards or loans

  • Be required to pay higher interest rates

  • Be asked for a guarantor or security

  • Struggle to get a mortgage or rent a property

  • Be refused mobile phone contracts or pay-monthly subscriptions

  • Be denied for car finance or insurance policies with monthly instalments

Some employers, especially in financial services, may even check your credit report as part of the recruitment process.

Can You Get Credit with a Bad Score

Yes, but your options may be limited. You may qualify for:

  • Bad credit loans

  • Credit builder credit cards with low limits and higher interest

  • Guarantor loans

  • SIM-only mobile contracts

  • Secured loans where you offer an asset such as a car as collateral

While these products can help you access credit, it’s important to use them responsibly to avoid making your credit situation worse.

How to Improve a Bad Credit Score

Improving a poor credit score takes time and consistent effort. Here’s how to start:

  • Register on the electoral roll at your current address

  • Make all payments on time, including credit cards, loans and utility bills

  • Reduce your credit utilisation by keeping balances below 30 percent of your limits

  • Check your credit report for errors and dispute any incorrect information

  • Avoid multiple credit applications in a short period

  • Use credit builder tools, such as low-limit credit cards or services that report rent payments

  • Keep old accounts open if they show a good payment history

You can monitor your progress for free using services like Experian, ClearScore (Equifax data) and Credit Karma (TransUnion data).

Real-World Example

Daniel had a credit score of 520 with Equifax after missing payments on a personal loan and falling behind on his mobile phone bill. He was declined for a car finance application. Over the next 12 months, he paid off his debts, registered on the electoral roll and used a credit builder card to rebuild trust with lenders. After a year of positive behaviour, his score improved by over 150 points.

Final Thought

A bad credit score in the UK is typically anything below 720 with Experian, 530 with Equifax or 565 with TransUnion. While a poor score can limit your access to credit, it is not permanent. By taking steps to demonstrate financial reliability and avoiding further issues, you can improve your credit rating over time and open the door to better financial opportunities.

Understanding what affects your score and being proactive about improvement is the first step toward financial freedom.