The steps you can take to increase your credit rating
Key takeaways
Knowing your credit score allows you to understand how lenders might view any applications you make for a new credit card, loan or mortgage
Paying debts, household bills and other credit accounts on time will improve your credit score
Registering on the electoral roll will improve your credit score as it makes it easier for lenders to check your identity
Being financially linked to someone with bad credit can harm your creditworthiness
Why is a good credit score important?
A good credit score is important because it plays a key role in your ability to borrow money such as personal loans, credit cards, mortgages, and car finance.
Lenders, such as banks and credit card providers, use your credit score to assess how likely you are to repay what you borrow. A higher score can improve your chances of being approved for loans, mortgages, or credit cards.
A good credit score can also give you access to a wider range of products, lower interest rates and APRs, and higher credit limits. This can save you money over time, particularly on large financial commitments such as a mortgageor car finance.
For example, a loan advertised at 6% APR could cost significantly less in interest than one offered at 30% APR. The rate you receive will depend on the lender, the product and your individual circumstances, so you won't necessarily qualify for the advertised rate.
Mobile phone contracts, utility accounts and rental applications may also involve credit checks. Having a stronger credit history can make it easier to pass these checks, although providers have different requirements.
If you're planning a big purchase, such as buying a home, it's worth checking your credit report in advance so you have time to identify and address any problems.
Is there one official credit score for everyone?
No, there isn't one official credit score used by every lender in the UK. Each credit reference agency has its own scoring system, and lenders use their own criteria to decide whether to approve applications.
The main UK credit reference agencies are Experian, Equifax, TransUnion and Crediva. They collect information about your financial history and use it to produce credit reports. The scores they provide can differ because they may hold different information and use different scoring models.
Lenders don't necessarily use the score you see when checking your credit file. They may assess your application using information from one or more credit reference agencies, alongside factors such as your income, existing debts, affordability and previous dealings with them.
There isn't a universal credit blacklist either. Being refused credit by one lender doesn't automatically mean another will refuse you.
What this means for you: don't focus solely on reaching a particular score. Check that the information on your credit reports is accurate, make repayments on time and manage your borrowing responsibly. These steps can help strengthen your credit profile, regardless of which scoring system a lender uses.
How can I check my credit score?
If you're after quick access to your credit score, MoneySuperMarket's Credit Score Checker shows your score and offers tips on how to improve it, all for free.
You can also request a copy of your credit report from the four UK credit reference agencies: Experian, Equifax, TransUnion and Crediva.
Checking more than one report can help you spot differences or information that may be missing or incorrect.
What should I look for on my credit report?
It's worth reviewing your report for:
Personal details, including your name and address
Credit accounts, balances and credit limits
Your repayment history and any missed payments
County Court Judgments (CCJs) and other relevant public records
Financial associations with other people
Any signs of fraud or accounts you don't recognise
Checking your own credit report or score won't harm your credit rating. It can help you understand what lenders may see when you apply for credit and identify anything that needs correcting.
How can I improve my credit score?
To improve your credit score, make sure you pay all bills and credit commitments on time. Ensure your personal details, including your address, are up to date and that you're registered on the electoral roll.
Here are some ways you can improve your credit score:
Get on the electoral roll
Being on the electoral register at your current address helps prove your identity and is checked by lenders as part of your credit score. This is a small step that can give your credit rating a boost.
Show stability
You could improve your credit score by not moving house too often – lenders like stability. If you do move house, remember to register to vote again.
Check your credit report accuracy
Your credit report holds details on your financial history, including whether your accounts have been settled or if you have missed payments. Sometimes this information can be incorrect, so check your credit report for its accuracy.
If something seems to be missing or there are errors, contact the provider to correct them. Similarly, you can add a ‘notice of correction’ which allows you to explain why a payment was missed.
Pay your bills on time
A missed payment can leave a mark on your file that could negatively affect your credit rating . That’s why it’s important to pay your bills on time and set up direct debits so you don’t miss anything.
Build your credit history
If you’ve never borrowed money before, there won’t be any evidence that you’re a responsible borrower who can pay money back in good time. So, if you’ve just turned 18 or just moved to the UK, you will probably have a low credit score.
A good way to build a credit history is with a credit builder card. These cards often have higher interest rates, so make sure you pay off the balance in full each month.
Get a pay monthly mobile phone
Taking out a pay monthly mobile phone contract can help improve your credit score if you manage it responsibly. Each monthly payment is a form of credit agreement, and making those payments on time shows lenders that you’re reliable with your financial commitments.
Pay for car insurance monthly
Paying for car insurance monthly can help improve your credit score because it’s treated like a credit agreement.
When you choose to pay in instalments, the insurer typically uses a third-party finance provider to cover the full annual cost upfront, and you repay it in monthly amounts plus interest. These regular payments are reported to credit reference agencies (CRAs), so making them on time helps build a positive payment history.
Don’t use all available credit
How much of your total available credit you owe is known as your credit utilisation. For example, if you have a £2,000 credit card limit and owe £500, your credit utilisation ratio is 25%.
If you keep your credit utilisation relatively low, potential lenders will view you as managing your finances responsibly.
Close unused credit card accounts
If you’ve held several credit cards over the years, you may find some of them aren’t used anymore. If that’s the case, it’s best to close those unused accounts.
You'll then lower the total amount of credit available to you. A large overall credit limit, even if unused, can be seen negatively by some lenders.
Use an eligibility checker
Using an eligibility checker before applying for credit can significantly reduce your risk of being rejected because it performs a soft credit search that doesn’t affect your credit score.
These checkers assess your chances of approval based on your credit profile and the lender’s criteria, helping you identify products you’re more likely to qualify for.
How can I correct errors in my credit report?
If you find an error on your credit report, contact the lender or provider responsible for the information and ask them to correct it.
You can also raise a dispute directly with the credit reference agency that holds the report.
Follow these steps:
Identify the error. Check the details carefully and gather any supporting evidence, such as statements, payment confirmations or correspondence.
Contact the provider. Explain what's wrong and ask them to investigate and update the information they have supplied to the credit reference agency.
Raise a dispute with the credit reference agency. If the provider can't resolve the issue, contact the relevant agency and ask it to investigate.
Escalate if necessary. If the problem remains unresolved, follow the provider's complaints process. You may also be able to complain to the Information Commissioner's Office (ICO) if the issue concerns inaccurate personal data.
Keep copies of your correspondence and any evidence you send. The time needed to investigate an error can vary, so ask the provider or credit reference agency when you can expect an update.
Correcting inaccurate information may help your credit profile, but it won't remove legitimate negative information simply because it affects your score.
Should I use a credit repair company?
You don't usually need to pay a credit repair company to correct errors on your credit report or improve your credit score. You can contact lenders and credit reference agencies yourself, free of charge.
Be wary of companies that promise to remove accurate negative information, guarantee a particular credit score or claim they can erase legitimate debts. No company can simply remove accurate information because you want it removed.
Before paying for help, use the free guidance available from MoneyHelper and the credit reference agencies. If you're struggling with debt, consider contacting a free, independent debt advice service instead.
How can I improve my credit score when I have CCJs?
If you have a County Court Judgment (CCJ), check that the details are correct and, if you owe the debt, pay it as soon as you can afford to. Paying a CCJ won't automatically remove it from your credit report, but it can change its status.
A CCJ can remain on your credit report for six years from the date of the judgment, even if you've paid it off. If you pay the full amount within one month of the judgment, you can usually have it removed from the register. If you pay it after that period, it can normally be marked as satisfied.
If you believe a CCJ has been recorded incorrectly, or you didn't receive the relevant court papers, seek advice about whether you can challenge the judgment. Don't assume that paying the debt will correct an error in the record.
Alongside addressing the CCJ, focus on the steps that can strengthen your credit profile over time: make other repayments on time, check your credit reports for errors and avoid unnecessary applications for new credit.
What is a Cifas marker and how does it affect my credit?
A Cifas marker is a warning recorded by Cifas, the UK's fraud prevention service. It can be used to alert organisations to suspected or confirmed fraud risks, including situations where someone has been a victim of identity fraud.
A Cifas marker isn't the same as a credit score, and it doesn't automatically mean you've done anything wrong.
However, it may lead a lender or other organisation to carry out additional checks before deciding whether to approve an application. This can cause delays or, in some cases, a refusal.
If you find a Cifas marker on your credit report and believe it's incorrect, take the following steps:
Check the details: Find out which organisation recorded the marker and what it relates to.
Contact the organisation responsible: Ask it to review the marker and provide evidence supporting its decision.
Request a correction if it's wrong: If the organisation agrees that the marker was recorded incorrectly, ask it to arrange for the information to be corrected or removed.
Escalate your complaint if needed: Follow the organisation's complaints process and consider contacting Cifas or the relevant regulator for further guidance.
If you're a victim of fraud, keep evidence of what happened and explain the circumstances to the organisation involved. Don't pay a company that promises to remove a legitimate marker without first checking the official process.
Does having a credit card improve my credit score?
Having a credit card can help you build a credit history, but it won't automatically improve your credit score. What matters is how you manage it.
Making payments on time, keeping your balance within your limit and avoiding unnecessary borrowing can help demonstrate responsible credit management. On the other hand, missed payments, high balances and repeated applications may harm your credit profile.
If you decide to get a credit card to build your credit history, choose one you can afford to manage. A credit builder card may be an option if you have a limited credit history, but check the interest rate, fees and eligibility requirements first.
How long does it take to improve my credit score?
Improving a poor credit score can take a few months to over a year, depending on your financial situation and the actions you take.
💡 Top tip: First time buyers, in particular, should try to improve their credit score before applying for a mortgage. The same goes if you are planning to remortgage.
With the right steps, like meeting your repayments, registering on the electoral roll and checking your credit report for errors, you should see improvements to your credit rating. You can keep an eye on your credit score, with quick tips on how to improve it with credit score.
📣 Did you know? A recent consumer survey of Generation Z by MoneySuperMarket found that 35% of young people had checked their credit score online as a way of keeping on top of their credit rating and taking steps to improve it.
While missed payments and exceeding credit limits can stay on your file for up to six years, developing good financial habits is the best way to improve your credit score over time.
How often should I check my credit score?
You should check your credit score at least once a month, especially if you’re planning to apply for credit, such as a loan, mortgage, or credit card.
You may also want to check it a short time after making any new credit applications or taking any measures to improve your credit score, like closing old accounts or registering on the electoral roll.
Regular checks help you spot errors, track improvements, and catch any signs of fraud or identity theft early. Many services, like MoneySuperMarket’s Credit Monitor, offer free monthly updates without affecting your score, making it easy to stay informed and in control of your financial health.
What will have a negative impact on my credit score?
Missed payments are one of the factors that can damage your credit score. Other actions can also affect your credit profile, including:
Missing payments: Late or missed repayments on credit cards, loans and other reported accounts can stay on your credit report for up to six years.
Using too much of your available credit: High credit card balances or regularly approaching your credit limits may make lenders more cautious.
Going over your agreed overdraft limit: An unarranged overdraft or other account problems may be reported and could affect your credit profile.
Having financial associations with someone who has poor credit: A joint mortgage or bank account can create a financial link. Their credit score doesn't automatically affect yours, but lenders may consider the association when assessing an application.
Not managing credit card balances: Carrying high balances can increase your credit utilisation and make borrowing more expensive. Paying your balance in full each month, where possible, can help you avoid interest on purchases.
Having a CCJ or bankruptcy recorded: These can have a significant impact on your credit profile and may remain on your report for several years.
Making lots of credit applications in a short period: Multiple hard searches may make lenders think you're relying on credit or experiencing financial difficulty.
If you're struggling to keep up with credit card repayments, read our guide to paying off credit card debt.
Can my existing interest rate change if my credit score drops?
It can happen, although it isn't automatic. Some lenders may be able to change the interest rate on an existing credit agreement if they believe your circumstances or risk profile have changed. Whether they can do this depends on the product, your agreement and the applicable rules.
A lower credit score doesn't, by itself, mean your lender will increase your rate. If you receive a notice that your interest rate is changing, check the terms of your agreement and the reason given by your provider.
If you're unhappy with the change, contact the lender and ask it to explain your options.
Depending on the type of credit, you may have the right to reject the increase or close the account, subject to the relevant terms and repayment requirements.
Get advice before making a decision if you're unsure how it could affect your finances.
Can I add rent payments to my credit file?
Yes, some services allow renters to have their rent payments recorded or shared with credit reference agencies. This may help demonstrate a history of regular payments, particularly if you have a limited credit history.
However, the way rent payments are recorded varies between services and credit reference agencies, and not every lender will take the information into account. Rent reporting also doesn't guarantee that your credit score will improve.
Check whether your landlord, letting agent or a recognised rent-reporting service offers the option, and find out whether any fees apply before signing up.
Do I really need to borrow before applying for credit?
No. You don't need to take out a loan or credit card simply to improve your credit score.
If you're considering borrowing solely to build a credit history, weigh up the potential benefits against the interest, fees and risk of taking on debt.
Borrowing money you don't need can put pressure on your budget and lead to missed payments if you can't afford the repayments.
You can take other steps to strengthen your credit profile, such as registering on the electoral roll, checking your credit reports and making payments on existing accounts on time. If you do choose to borrow, make sure the product is suitable for your circumstances and that you can afford it.
📌 If you're worried about money and it’s affecting your mental health, visit our Money Talks hub for guides and support.
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Emma Lunn
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Emma has written about personal finance for almost 20 years, with a career spanning several recessions and their inevitable consequences. Emma’s main focus is helping people learn to manage their...
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Collette is an experienced Content Writer at MoneySuperMarket, helping people make sense of money and insurance topics without the jargon. She shares her experience as a first-time Mum and top...
