-

How to improve your credit score

What can you do to improve your credit score?

A good credit history is one thing that helps lenders to say yes to your application. That’s why it’s useful to know what things can affect your credit rating – and how you can improve it.

So whether you’ve recently been turned down for credit or just want to apply in the future – take a look at some of the ways you could help improve your credit score.

If you've not tried our Credit Builder tool yet, have a go and get simple tips that could help give your rating a boost.

Credit Builder tool

Start building your credit rating today

Improving your credit score could really pay off

Your credit score is your financial footprint. It’s a snapshot that companies use to decide how reliable you are. The stronger your credit rating, the more appealing you are as a potential customer. That could translate into all kinds of financial benefits for you – like access to a wider range of loans, credit cards and mortgages at more competitive interest rates. It’s also vital if you’re planning on buying a home or saving for a major purchase.

And it’s not just banks that look at your credit score. Mobile phone providers, utilities, insurance companies, rental agencies and lots of other service providers rely on it. That’s why it’s really worth your time to find out and improve your credit score.

So whether you’ve recently been turned down for credit or just want to apply in the future – take a look at some of the ways you could help improve your credit score.

If you haven’t tried our Credit Builder tool yet, have a go and get simple tips that could help give your rating a boost.

And if you don’t already know your credit score, here’s how to check your credit score. It’s free. It’s your right. And it only takes a few steps.

How they decide your credit score

The first step to improving your credit score is understanding how it’s set.

All the leading credit rating agencies (CRAs) base their credit scores on a similar set of criteria. That’s because they’re all assessing your credit history – how you’ve managed money over the last number of years. So if you take steps to improve one credit score, you’ll see a similar improvement with all the other agencies.

Here are some of the factors that can harm your credit score:

  • a history of late or missed payments 
  • going over your credit limit
  • defaulting on credit agreements 
  • bankruptcies, insolvencies and County Court Judgements (CCJs) on your credit history 
  • making too many credit applications in a short space of time
  • joint accounts with someone with a bad credit record
  • frequently withdrawing cash from your credit card
  • errors or fraudulent activity on your credit report that’s not been detected
  • not being on the electoral roll
  • moving house too often.

If you want a deeper dive into the about how credit scores are set, the truth about your credit rating will help give you a better glimpse into what goes into your credit score.

The key steps to improving your credit score

Credit reference agencies like to see people spending on cards regularly so long as they manage their account responsibly. Making your payments on time each month can be a big help in building a better credit rating. But watch out, going rogue and missing payments or exceeding your limit could put lenders off giving you credit.

Other ways to boost your credit score

If you don’t already have a credit card, or are looking to apply for one in the future, there are still plenty of important things you can do to help improve your credit score.