What Is a Bad Credit Score in the UK?

If you’ve ever checked your credit score online and wondered whether it’s “good” or “bad”, you’re not alone. In the UK, your score can vary depending on which credit reference agency (CRA) you use — Experian, Equifax or TransUnion. Each agency uses its own scoring range, and that means the definition of a bad credit score depends on who you ask.

This guide breaks down what counts as a bad score with each agency, how lenders actually interpret your credit file, what causes a poor score, and what you can do to improve it.

What Counts as a Bad Credit Score in the UK?

There is no single UK credit score. Instead, each CRA has its own scoring scale. Here's how “bad” is defined across all three:

1. Experian (0–999 scale)

• Bad Credit Score: 0–560

• Poor Credit Score: 561–720

• Fair: 721–880Experian is the most commonly used score in the UK, and anything below 560 signals high risk to lenders. You may struggle to get approved for loans, mortgages, or mainstream credit cards.

2. Equifax (0–1000 scale)

• Bad Credit Score: 0–438

• Poor: 439–530

• Fair: 531–670Equifax’s range is different from Experian’s, but the label “bad” essentially reflects the same thing — missed payments, defaults, or limited credit history.

3. TransUnion (0–710 scale)

• Bad Credit Score: 0–550

• Needs Work: 551–565

• Fair: 566–603TransUnion is sometimes referenced as the “middle ground” CRA. Anything under 550 sits firmly in the bad range.

  
  

What Having a Bad Credit Score Really Means

A bad credit score tells lenders the following things:

• You might have struggled to pay back borrowing in the past

• You could have missed payments, defaults or even a CCJ

• You may be using too much of your available credit (maxed-out cards)

• You might not have much credit history at all

Lenders assess risk, and a low score simply means they see you as a higher-risk borrower.

As a result, you may find:

• Rejections for loans or credit cards

• You’re only offered “bad credit” products with higher APRs

• Lower or temporary credit limits

• Extra checks or proof of income

• Higher deposits for phone contracts or utilities

  
  

What Causes a Bad Credit Score?

Most poor scores come from one or more of the following:

1. Missed or Late Payments

Even one missed payment can lower a score for over a year. More serious arrears damage it for longer.

2. Defaults

A default stays on your credit file for six years, even if paid off. This is one of the biggest score destroyers.

3. County Court Judgments (CCJs)

These also stay for six years and signal severe repayment issues.

4. High Credit Utilisation

Using more than 30%–50% of your credit limit can lower your score. Maxed-out cards make you appear reliant on borrowing.

5. Too Many Credit Applications

Multiple hard searches within a short period suggest financial distress.

6. No Credit History at All

Surprisingly, you can have a bad-looking score simply because you’ve never borrowed before.

How Lenders Decide — It’s Not Just Your Score

Here’s something most people don’t know:

Lenders do NOT rely only on your credit score. They run their own internal scoring systems, using:

• Income

• Spending patterns

• Existing debts

• Type of credit you already have

• Length of address history

• Employment stability

This means a “bad score” doesn’t guarantee rejection, just as a “good score” doesn’t guarantee approval.

How to Improve a Bad Credit Score (Practical Steps)

If you're starting with a low score, don’t panic — scores can improve quickly with consistent habits. Here’s what works:

1. Make Every Payment On Time

Payment history is the number one scoring factor. Setting up direct debits is the easiest fix.

2. Reduce Credit Card Balances

Try to keep credit utilisation under 30% of your limit. Under 10% is ideal for score lift.

3. Register on the Electoral Roll

This massively boosts your “stability” score.

4. Use a Credit-Builder Card (Responsibly)

Cards designed for bad credit help create a solid repayment history — but always repay in full.

5. Use Rent Reporting

Apps like CreditLadder or Canopy can add rent payments to your credit file.

6. Dispute Errors on Your Credit Report

Incorrect late markers or duplicated debts are more common than people realise.

7. Avoid Multiple Credit Applications

Use “soft search” tools before applying.

How Long Does It Take to Recover from a Bad Credit Score?

Most people see improvement in 3–6 months, depending on:

• Severity of past issues

• Credit utilisation

• Consistent payment behaviour

Defaults and CCJs remain for six years, but you can still rebuild around them.

Is a Bad Credit Score Permanent?

No — absolutely not. A bad score is simply a snapshot of your past. With responsible management, even people with severe credit issues can go from “bad” to “good” in as little as 12–18 months.

Final Thoughts

A bad credit score in the UK depends on which credit agency you use, but across the board it signals to lenders that you may be a higher-risk borrower. The good news is that credit scores are not fixed — they can be rebuilt with simple, consistent financial habits.

Whether you're just starting out or recovering from past difficulties, improving your credit score is absolutely achievable.