If you’re looking to check your credit score, there are a number of services that offer a free credit score checker. With Credit Karma and Experian, for instance, you can find out your credit score in minutes and make regular improvements so you can access the best deals for loans, credit cards and mortgages.

An individual’s credit score can go up or down on a regular basis depending on how well we pay for things like credit cards, loans and other bills.

You can now get access to your credit score on demand, whether you log in or download an app – and you can find ways to maximise your score, giving you access to the best deals for all types of financial products.

What Are Credit Scores?

Credit scores are given to everyone when they turn 18 and they are a numerical value calculated by the three main credit reference agencies in the UK (Experian, TransUnion and Equifax). Your credit score is used to assess your ‘creditworthiness.’

Potential lenders and providers of credit cards, car finance, mortgages and loans use your credit score to determine where you are a good person to give credit to, and whether you’ll be able to repay the credit.

The rule of thumb is – if you repay your debts on time, your credit score will improve or remain high. If you miss repayments and default, your credit score will fall.

The higher the number of your credit score, the better, and the scores will vary depending on the credit reference agency. For example:

• Experian (0 to 999)
• Equifax (0 to 700)
• TransUnion (0 to 710)

Having a high credit score can mean you get better interest rates on loans and other forms of credit, as it’s usually a good indicator that you manage your money well.

Things Included in Your Credit Score Are:

• If you are on the electoral roll and have a permanent address
• Your repayment history of loans and credit cards
• Utility bills and mobile phone bills
• Whether you are associated to someone with bad credit (married or living with)
• Whether you have made a large number of credit applications in a short space of time

Why Should I Check My Credit Score?

For a lot of people, checking their credit score isn’t high on their list of priorities. And unless you’re looking to take out credit, you may not need to know your score, as it might not impact your day to day life. However, there are several reasons why you should check your credit score on a fairly regular basis – we’ve listed the main reasons below:

Get Access to Better Credit Rates

The lowest rates and highest approvals for personal loans and credit cards are reserved for people with good credit histories. This is because lenders feel confident that the loan will be repaid on time if the customer has demonstrated a strong history of paying off similar products in the past. The individual will usually need to have a regular income and not have too many loans open, but having a good credit score is one of the main factors used by lenders to determine eligibility.

Vital for Getting a Mortgage or a Car Loan

If you are interested in getting a mortgage for a new home or buying a car on finance, your credit score will always be taken in account. Improving your credit score and making it as high as possible can help you get one step closer to your dream home or car.

Get Pre-Approved Offers

Companies that offer credit reports can also give you access to loan deals and offers based on your credit score and eligibility. This can save you time, as rather than applying with multiple lenders, you can be pre-approved with one. You’ll also have access to fast finance when you need it.

Easy Error Corrections

Credit score checkers will give you some simple ways to boost your credit score that you may not have considered or known about. This could include joining the electoral roll or closing down any accounts that you do not use.

Check Your Credit Score Live

You can now check your credit score in real-time, helping you stay on top of your credit rating and make improvements. If you are in the process of getting a mortgage or actively looking to improve your credit score, you can now use an app to check your credit report live.

Your free credit score report can also send you alerts by email, text or push notifications, letting you know if your score has gone up or down. Also, if there is any unusual activity such as lots of applications made in your name or fraud, you will be alerted very early on and can take action. To download a credit score checker app, simply visit Credit Karma or Experian’s website, or download them via an app store.