How Do I Improve My Credit Score?

Your credit files are held by Equifax, Experian, and TransUnion (formerly Callcredit). Each file may contain different information, so it’s worth checking all three. Review your reports line by line to spot any errors, such as incorrect addresses, outdated accounts, or financial links with other people.

Being on the electoral roll is a key factor in most credit assessments. If you’re not eligible to vote in the UK, you can send proof of residency to the credit reference agencies and ask them to add a note to your file. GOV.UK

One of the biggest factors affecting your credit score is your payment history. Missed or late payments — even once or twice — can stay on your file for up to six years and damage your creditworthiness. Always aim to make payments on time.

If you’ve had joint accounts, loans, or bills with a partner or flatmate, their credit history could still impact yours. If your circumstances have changed, request a “notice of disassociation” from the credit agencies to unlink your finances.

Ensure all your open and active accounts (such as phone contracts, credit cards, and loans) are registered to your current address. Inconsistencies can harm your credit score or delay application approvals.

Each time you apply for credit, a footprint is left on your file for 12 months. Too many applications in a short period may look like you’re desperate for credit, which can lead to rejections. Space out applications where possible.

If you have little or no credit history, consider using a credit rebuild card. These typically come with high interest rates but are designed for people with poor credit. Use the card to make small purchases and set up a direct debit to repay the balance in full each month. This shows lenders you can manage credit responsibly — and helps build a positive repayment record.

Important: Never withdraw cash on a credit card, as this often incurs high fees and may be viewed as risky behaviour by lenders.

Lenders favour stability. Being in the same home, with the same employer, and using consistent details across all your applications helps. If possible, avoid changing jobs, addresses, or banks too frequently. Having a landline number can also improve verification.

Major events like maternity leave or a job change can affect your income. If you're planning to apply for credit, it's often better to do so before your circumstances change. However, never provide misleading information on applications — dishonesty can damage your score long-term.

Having too much available credit, even if unused, can make lenders cautious. If you have old store cards or credit cards you no longer use, consider closing them. However, keep older accounts with a good payment history open — they can improve your credit age and score.

Lenders look at how much debt you owe. Reducing your balances — especially on credit cards and loans — will lower your credit utilisation ratio and boost your score. If you have savings, consider using them to pay off high-interest debts.

If you find an error or an unfair default on your file, write to the lender and explain your case clearly and politely. If they don’t respond or you’re not satisfied, you can escalate the issue to the Financial Ombudsman. You can also add a short “notice of correction” to your credit file to explain the situation while it’s being investigated.

When you choose to pay for car or home insurance monthly, it’s usually classed as a form of credit. This can involve a hard search on your credit file and may lower your score slightly. Where possible, pay annually to avoid this impact.