What’s Happening to Credit Scores in the UK?

Credit scores, once a quiet technicality in personal finance, have now stepped into the national spotlight. For millions across the UK, the three-digit number assigned by credit reference agencies such as Experian and Equifax is more than just a bureaucratic marker. It shapes the possibilities of borrowing, home ownership, and sometimes, even employment. In recent years, as the cost-of-living crisis lingers and interest rates nudge upward, the conversation around credit scores has intensified. Consumers now ask not only how their score is performing, but why—and, crucially, what they can do if it turns for the worse.

Over the last year, data released by Experian and Equifax has painted a complex picture. While the average credit score in the UK hovered around 797 (on Experian’s 0-999 scale), recent figures show subtle downward shifts for certain demographics. The rising tide of household debt, particularly in unsecured lending, is a notable factor. Equifax reports that missed payments on credit cards and personal loans have increased by more than 10 percent since last year. At the same time, new credit applications are up, as households seek to cover day-to-day expenses. Yet, it’s not all bleak: Experian’s data shows many UK consumers are taking advantage of tools like free credit checks and score-building products. Awareness is up, and a growing number of people are actively managing their records by registering on the electoral roll, checking for errors, and settling defaults earlier than before.

What does this mean for you? A lower-than-expected score needn’t spell financial doom. Many lenders now look beyond the topline number to the context: is the dip due to a one-off event or signs of chronic distress? Here are a few practical steps:

• Check your credit report regularly with both major agencies, Experian and Equifax, to spot errors early.
• Register on the electoral roll—this simple action can immediately give your score a lift.
• Keep credit utilisation below 30 percent of your limit for each card, and never miss a payment, even the minimum.
• Avoid multiple new credit applications in quick succession, as this may signal financial uncertainty to lenders.

Many experts predict further volatility as economic pressures continue. A proactive approach—scrutinising your report, clarifying what lenders see, and taking simple steps—can offer real reassurance and practical benefits. In the words of one industry analyst, “Understanding the factors affecting your score helps you respond before small slips become big setbacks.”

Interested in navigating these changes with confidence? Stay informed with Kandoo’s insights. Our team brings you the latest finance updates, offering straightforward guidance for your everyday decisions. Want to know which lenders may look beyond the headline score? Contact us today for a free, confidential chat about your options and how to manage your borrowing smarter.