There is no single credit score
A credit score is a number a bureau calculates from your credit record to summarise how likely you are to repay. TransUnion uses a scale from 0 to 999 and Experian one from 0 to 740; other bureaus use their own. A score of 600 is therefore not the same thing at every bureau, and the cut-off for a good score differs from one scale to the next.
Lenders also often use their own scoring rather than a bureau's number. When people search for a loan with a 500 or 600 credit score, what they usually mean is that their record has some negative entries and lenders have started saying no.
What lenders look at besides the number
Every registered lender must run an affordability assessment before it lends. It looks at your income, your existing debt repayments and your living costs, and at your credit record. A lower score with a steady salary paid into a bank account can be a better application than a higher score with irregular income.
The entries behind the score matter more than the number: a recent judgment or an account handed over this year weighs more than an old late payment. Many applications in a short time count against you too, because each enquiry stays on your record for a year.
What a low score usually means for a loan
Providers who consider applicants with low scores usually offer smaller amounts over shorter terms, and the cost is often close to the legal maximum. The National Credit Act still caps the interest and fees, so check every quote against those limits and compare the total you repay, not only the instalment.
Be wary of anyone who promises a loan without looking at your record, or asks for a fee before paying out. No registered provider can approve you unseen, and an upfront fee is a common sign of a scam.
How to raise your score over time
Pay every current account on time, every month: the payment history is the largest part of most scores. Bring arrears up to date where you can, and ask for a letter when a judgment is paid in full so the bureau removes it.
Apply for new credit only when you need it, and to providers likely to consider you rather than to many at once. Check your report once a year for errors and dispute anything that is wrong. Our guide on how to check your credit record shows where to start.
Comparing your options
If you need to borrow now, it helps to see which providers might consider you before you apply anywhere, so that each application has a real chance and you do not collect a string of declined enquiries. Our page on loans for blacklisted people explains who still lends with a poor credit record, what it costs and what to check before you sign.