Improving your credit score (UK)

What influences your credit score?

Credit reference agencies each use their own scoring systems, but they broadly look at similar information, including:

• Payment history: Do you pay bills, loans and credit cards on time? Late or missed payments can harm your score.
• Credit utilisation: The percentage of your available credit you’re using. Lower utilisation (for example, below 25%) is generally seen as positive.
• Credit age: Older accounts show lenders that you have a track record. Closing old credit cards may shorten your credit history.
• New applications: Each credit application leaves a hard search on your report. Lots of applications in a short period can suggest desperation for credit.
• Types of credit: A mix of credit cards, loans and other accounts can indicate you can handle different forms of borrowing.

Steps that may help improve your score

There’s no guaranteed way to boost your score overnight, but many people find the following habits help over time:

1. Check your credit reports for errors with all three major credit reference agencies (Experian, Equifax and TransUnion) and correct any mistakes.
2. Register to vote at your current address. Being on the electoral roll can improve the traceability of your identity.
3. Make at least the minimum payments on time, every month. Setting up direct debits can help avoid accidental late payments.
4. Keep your credit utilisation ratio low by spreading balances across cards or asking for higher limits (but only if you won’t be tempted to spend more).
5. Space out applications for new credit and avoid “credit shopping” within a short timeframe.

Common myths and things to avoid

There’s no secret shortcut to a better score. Improving your credit is more about consistent, sensible habits than special hacks.

• Closing unused cards: This can actually harm your utilisation ratio. Consider keeping older accounts open unless they have high fees.
• Paying off all debts straight away: Clearing balances is good, but continuing to use and repay credit responsibly may show lenders you can manage borrowing.
• Using all available credit: Maxing out cards can indicate financial stress. Try not to regularly exceed about a quarter of your limit.
• Expecting quick fixes: Companies promising to “repair” your credit quickly should be treated with caution. Legitimate improvements take time.

Patience and ongoing monitoring

Credit scores are snapshots. As negative information ages and positive behaviour continues, scores often improve. Many lenders offer free eligibility checkers that won’t affect your score, and some budgeting apps let you view changes to your score over time. Monitoring your report can help you catch identity fraud and see the impact of your habits.

Sources

• Experian – How to improve your credit score
• MoneyHelper – Understanding your credit score
• Loqbox – Credit utilisation explained