CoverMapUK credit in 2026: the key numbers
The Bank of England’s Money and Credit release, published on 29 September 2026, shows the average effective rate on interest-charging credit cards was 21.55% in August 2026, up from 21.45% in July. The effective rate on new personal loans rose to 9.96%, from 9.86%. Credit card borrowing was growing at an annual rate of 13.3%.
UK Finance counts 60 million credit cards in issue. In June 2026, 47.6% of card balances incurred interest. The Money Charity’s September 2026 report puts average unsecured consumer credit at £4,560 per adult (July 2026 data).
Two other changes matter this year. Buy now, pay later (BNPL) has been regulated by the FCA since 15 July 2026, and MoneySavingExpert says late or missed BNPL payments now appear on credit reports. And two of the three credit reference agencies have changed their score scales.
UK credit score ranges by agency (2026)
If you remember Experian scores out of 999, that scale is out of date, and TransUnion is replacing its 0–710 scale. Here are the current ones.
| Agency | Current scale | “Good” band | Top band |
|---|---|---|---|
| Experian | 0–1,250 (since November 2025; was 0–999) | 861–1,000 | Excellent: 1,121–1,250 |
| Equifax | 0–1,000 | 531–670 | Excellent: 811–1,000 |
| TransUnion | 0–999 (rolling out from late September 2026 to June 2027; was 0–710) | 653–785 | Excellent: 786–999 |
Source: Experian; ClearScore (Equifax bands, July 2026); TransUnion newsroom (26 August 2026). Checked October 2026.
TransUnion says not all providers are switching at the same time, so for a while you may see an old or a new score depending on which app you use. It also says your underlying report and lender decisions aren’t affected by the change.
Most importantly, lenders don’t see any of these numbers. As MoneySavingExpert puts it, “you don’t have a single, market-wide credit score that lenders see”. Experian says lenders calculate their own score when you apply, using agency data, your application and their own records. Our guide to how credit scores work in the UK explains what’s on your report and how long it stays.
Why your APR may differ from the advertised rate
The rate in an advert is a representative APR. Under the FCA’s definition, the lender only has to expect that at least 51% of people who take out the product as a result of the advert will get that rate or lower. Up to 49% can be offered more. Barclaycard notes your personal APR depends on your credit rating.
Loan size matters too. MoneySavingExpert’s best buys (updated 1 October 2026) show a cheapest representative APR of 5.9% from M&S Bank for £7,500–£15,000. M&S charges 14.9% on £1,000–£2,999. Our credit card APR guide covers how card interest is worked out.
Choosing the right credit product
Different products solve different problems. This table matches common needs to the product type, with the main catch for each.
| If you want to… | Product type | Watch out for |
|---|---|---|
| Stop paying interest on existing card debt | 0% balance transfer card (longest on MSE: up to 38 months, fees 2.9%–3.49% on top deals) | Transfer fee; usually must transfer within 60–90 days; can’t move debt within the same banking group |
| Spread the cost of new spending | 0% purchase card (up to 26 months from M&S Bank and TSB) | Full APR on any balance left when the 0% ends; a missed payment can cost you the deal |
| Earn on everyday spending | Cashback or rewards card | Which? warns interest will “quickly outweigh” rewards unless you clear the balance monthly |
| Build or rebuild a credit history | Credit builder card | Low starting limits and high APRs (29.9%–39.9% on issuer pages we checked) |
| Borrow a fixed sum over a set term | Personal loan | Higher rates on small loans; possible early repayment charges |
| Combine several debts | Consolidation loan or balance transfer card | A longer term can mean more interest; secured loans put your home at risk |
Source: MoneySavingExpert (September 2026), Which? (1 October 2026), issuer pages, StepChange, MoneyHelper. Deals checked October 2026 and can change.
For card-by-card comparisons, see best UK credit cards and balance transfer vs 0% purchase cards. For fixed borrowing, see our personal loans guide. If you’re juggling several debts, our debt consolidation guide sets out the options, including free debt management plans. If your file needs work first, start with how to improve your credit score.
Protecting yourself when you borrow
- Section 75. MoneyHelper says if you use your credit card to buy something costing more than £100 and up to £30,000, the card company has “equal responsibility” with the seller if something goes wrong. Paying just the deposit on the card is enough. Debit cards aren’t covered, but you can ask for a chargeback within 120 days.
- Check eligibility before applying. Eligibility checkers use a soft search, which HSBC says “will not affect your credit score”. A full application leaves a hard search that other lenders can see – for 12 months at Experian and Equifax and 2 years at TransUnion, according to Zable.
- Don’t rely on minimum payments. Bank of Scotland’s example: £3,000 at 24% repaid at the minimum takes 28 years 3 months and costs £5,214 in interest. A fixed £124 a month clears it in 2 years 9 months.
- Get free debt advice if you’re struggling. On 22 September 2026 the FCA warned about firms steering people towards fee-charging debt solutions, and said “Free debt advice is available to everyone.” MoneyHelper and StepChange, a not-for-profit charity, both offer free help.
Frequently Asked Questions
What is a good credit score in the UK in 2026?
It depends on the agency. Good is 861–1,000 on Experian's 0–1,250 scale, 531–670 on Equifax's 0–1,000 scale and 653–785 on TransUnion's new 0–999 scale. Lenders don't see these scores – they assess your credit report.
What is the average credit card interest rate in the UK?
Bank of England figures show the average effective rate on UK credit cards that charge interest was 21.55% in August 2026, up from 21.45% in July.
Why was I offered a higher APR than advertised?
Only at least 51% of people taking the product need to get the representative APR, so others can be offered more. Your rate depends on your credit history and the lender's own assessment.
Does checking my eligibility affect my credit score?
No. Eligibility checkers use a soft search, which other lenders can't see. A full application leaves a hard search on your file.
Why has my Experian or TransUnion score changed?
Both changed scales. Experian moved to 0–1,250 from November 2025, and TransUnion is moving from 0–710 to 0–999 between September 2026 and June 2027. TransUnion says lender decisions aren't affected by the switch.
Where can I get free help with debt?
MoneyHelper and StepChange both offer free debt advice. The FCA says free debt advice is available to everyone, so you don't need to pay a firm for help.
Sources
- Bank of England – Money and Credit, August 2026 (29 Sep 2026)
- UK Finance – Card Spending Update, June 2026 (Sep 2026)
- The Money Charity – Money Statistics, September 2026
- Experian – Introducing the 1250 score
- ClearScore – What is a good or bad credit score? (Jul 2026)
- TransUnion – Expanded 0–999 consumer credit score (26 Aug 2026)
- MoneySavingExpert – Credit scores explained (Aug 2026)
- FCA Handbook – Glossary: representative APR
- MoneySavingExpert – Cheap personal loans (1 Oct 2026)
- MoneySavingExpert – Credit cards hub (24 Sep 2026)
- Which? – Best cashback and reward credit cards (1 Oct 2026)
- MoneyHelper – How you're protected when you pay by card
- Bank of Scotland – Minimum payments
- FCA – Debt advice warning: spot the red flags (22 Sep 2026)
- StepChange – What we do
Other Types of Credit
This page focuses on credit cards and credit scores. CoverMap also covers these other UK credit topics:
Combining multiple debts into one, and when it's actually worth it.
What genuinely improves a poor credit score — and what doesn't.
Business credit cards and borrowing for small UK businesses.
Credit Card & Score Guides
How balance transfer, purchase and rewards cards compare right now.
What Experian, Equifax and TransUnion actually measure, and why your three scores differ.
What “representative APR” really means, and why your rate might be higher than advertised.
Practical, realistic steps that actually move the needle, and myths that don't.
Which type of 0% card actually solves your problem — existing debt or new spending.