Credit Score Requirements: A Practical Guide

If you’ve ever wondered why some lenders say “bad credit” while others ask for a “perfect score,” you’re not alone. Credit scores are the first thing banks look at when you apply for anything from a cheap credit card to a mortgage. Knowing the score ranges that matter can save you time, reduce frustration, and even help you plan your next move.

How Credit Scores Affect Different Loans

Every type of credit product has its own sweet spot. For a typical personal loan, lenders usually want a score of at least 620. Anything below that often means higher interest rates or a outright denial. Car loans are a bit more forgiving—many auto financiers will approve applicants with scores in the 580‑640 range, but expect to pay more for the loan.

When it comes to mortgages, the bar is higher. Most UK banks look for a score of 680 or above for a standard residential mortgage. If you’re aiming for a low‑deposit deal, you might need to be in the 720+ bracket. Credit cards, on the other hand, can start at a score of 600 for basic cards, while premium rewards cards often require 700 or more.

Understanding these thresholds helps you target the right product. If your score sits just below a threshold, you might choose a lower‑rate credit card first, build a positive payment history, and then go after a mortgage later.

Tips to Meet Common Score Requirements

1. Pay on time, every time. Payment history makes up about 35% of your score, so missed payments are costly.

2. Keep credit utilization low. Aim for under 30% of your total limit. If you have a £5,000 limit, try to stay below £1,500 owed.

3. Check your credit report. Errors happen. Spot a mistake? Dispute it and get it corrected quickly.

4. Avoid opening many accounts at once. Each hard inquiry can shave a few points off your score, and too many can signal risk.

5. Mix up your credit types. Having a credit card, a small personal loan, and a student loan can boost the “credit mix” factor, as long as you manage them responsibly.

Following these steps won’t magically catapult you to 800 overnight, but steady habits will push you past the most common cut‑offs for loans and cards.

Finally, remember that lenders also look at your income, employment stability, and debt‑to‑income ratio. A solid score gets you in the door, but a strong overall financial picture closes the deal.

Use this guide as a checklist before you apply. Knowing the score you need, and working on the factors you can control, makes the whole process less stressful and more successful.