When you take out a credit builder loan and pay it back on time, this is reported to the main UK credit reference agencies. Over time, this creates a record that shows you’re a reliable borrower, which can boost your credit score and make it easier to get approved for other types of finance, like credit cards, car loans, or even a mortgage.
Consistency is key here. While on-time payments can improve your score, missed or late payments can hurt it. Setting up a Direct Debit can be a great way to make sure you never miss a payment.
Most lenders will check your credit score with one or more of the three main UK credit reference agencies – Experian, Equifax, and TransUnion. Each agency scores you slightly differently, using its own range and rating system, but you’ll generally end up in a similar overall category across all of them.
Here’s a handy guide to the score ranges used by the main UK credit reference agencies:
Credit agency | Score range | Excellent | Very good | Good | Fair | Poor | Very poor |
|---|
Experian | 0–999 | 961-999 | n/a | 881-960 | 721-880 | 561-720 | 0-560 |
Equifax | 0–1,000 | 811-1,000 | 671-810 | 531-670 | 439-530 | 0-438 | n/a |
TransUnion | 0–710 | 628-710 | n/a | 604–627 | 566–603 | 551-565 | 0-550 |
Other credit reference agencies in the UK
In addition to the main UK credit reference agencies, other providers use alternative data or focus on business credit. Here’s a quick guide to how they work.
Agency | Name of credit score | How it works |
|---|
Crediva | Crediva Score | This score looks beyond the usual credit history, using extra financial info to give a fairer view of your creditworthiness – especially handy if you have little or no traditional credit record. |
Credit Kudos | Signal | Signal taps into Open Banking data and smart algorithms to see how you manage your money and predict your likelihood of repayment. Credit Kudos say it gives lenders a fuller picture of your financial behaviour with the intention of boosting acceptance levels. |
Dun & Bradstreet | Dun & Bradstreet Score | Every business has a credit score that tracks payment history, balances, transactions, and more. D&B use this information to calculate business credit scores and ratings, which lenders, suppliers, and partners can check to assess financial health. |
Knowing where your credit score sits can give you a better sense of your financial health and how close you are to moving up to the next category. Sometimes, just a small tweak to your finances can make a big difference!
Remember, your credit score isn’t the full story.
If you go on to apply for a bigger personal loan in the future, lenders will usually take a much broader look at your overall credit history. They’ll see your score, of course, but it’s just one part of the bigger picture. Things like your payment history, current borrowing and how you manage your accounts all play a role in their decision.
