{"id":328128,"date":"2021-05-21T10:08:07","date_gmt":"2021-05-21T09:08:07","guid":{"rendered":"https:\/\/www.finder.com\/uk\/?p=328128"},"modified":"2024-11-05T08:33:28","modified_gmt":"2024-11-05T08:33:28","slug":"improve-your-credit-score","status":"publish","type":"post","link":"https:\/\/www.finder.com\/uk\/credit-score\/improve-your-credit-score","title":{"rendered":"Top 10 ways to improve your credit score"},"content":{"rendered":"

Any time you apply for credit, from a personal loan to a mortgage, a lender will look at your credit score. Also known as your credit rating, it\u2019s the numerical value that is assigned to you based on everything that appears on your credit history. <\/p>

Credit scores<\/a> are calculated by credit reference agencies such as Equifax, Experian and TransUnion. They\u2019re used by lenders and credit providers to determine if you\u2019re a good candidate for a loan or other credit product.<\/p>

Here are our expert tips to improve your credit score and get it in top shape.<\/p>

Quick overview of how to improve your credit score<\/h3>

If you\u2019re looking to give your credit report a boost, here is a summary of the top 10 ways to improve your credit score in the UK:<\/p>

  1. Register on the electoral roll<\/a><\/li>
  2. Always pay your bills on time<\/a><\/li>
  3. Make sure your credit file is correct<\/a><\/li>
  4. Check for identity theft or fraud<\/a><\/li>
  5. Avoid county court judgments (CCJs)<\/a><\/li>
  6. Reduce existing debt<\/a><\/li>
  7. Staying at the same home<\/a><\/li>
  8. Maintain a good credit utilisation ratio<\/a><\/li>
  9. Consolidate your debt<\/a><\/li>
  10. Open a credit account<\/a><\/li><\/ol>

    What is my credit score?<\/h3>

    Throughout your life, your ability to manage various types of credit will be recorded on your credit report<\/a> \u2013 and that activity forms the basis of your credit score. It will include any application you make for credit and also any missed or late payments. <\/p>

    If you have a low credit score, lenders may view you as a borrower who is less likely to repay what they owe, which can result in you being denied credit or getting approved with more unfavourable rates and terms.<\/p>

    There are 3 main credit reference agencies that calculate your credit score. You might find that your score varies depending on the CRA you\u2019re using because they all have their own unique scoring software.<\/p>

    How do I improve my credit score?<\/h3>

    If you have a poor or fair credit score, there are a number of things you can do to boost your credit rating. However, there\u2019s no quick fix and if you want to boost your credit score you\u2019ll need to view it as an ongoing process. <\/p>

    Your financial history plays a big part in determining your credit score but it\u2019s also important to make sure your personal information is up-to-date, correct and accessible by lenders.<\/p>

    Here are the top 10 best ways to boost your credit score:<\/p>

    1. Register on the electoral roll<\/h3>

    This is possibly the easiest way to help build your credit rating. Being on the electoral roll gives lenders proof that you are who you say you are when you apply for a credit product and helps them ensure that you\u2019re a real person. It\u2019s free to register, via the gov.uk website.<\/p>

    2. Always pay your bills on time<\/h3>

    Whether it\u2019s for your phone, broadband, energy or credit card, paying your bills in full and on time shows potential lenders that you\u2019re responsible with your finances and capable of managing ongoing debts. Setting a direct debit for regular bills is an easy way to avoid forgetting a payment. <\/p>

    3. Make sure your credit file is correct<\/h3>

    It\u2019s important to regularly check your credit report for any errors in your personal details or financial history. Even relatively minor mistakes like having the wrong date of birth or the wrong address can have a negative impact on your ability to get credit.<\/p>

    4. Check for identity theft or fraud<\/h3>

    You should check your credit file regularly for potential fraudulent activity, such as someone applying for credit using your name or details. If you find anything suspicious, you should contact the credit reference agency directly as soon as possible. If you think you\u2019re a victim of fraud or identity theft you should also contact your bank and report the crime to the police via the Action Fraud<\/a> website or phone number on 0300 123 2040. <\/p>

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    Our expert says: How to protect yourself from identity theft and impersonation scams<\/div>\n
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    \"Identity theft is when someone uses your name and personal details to apply for credit or buy items in your name, and you\u2019re landed with the bills. In an impersonation scam, a frauster pretends to be a trusted organisation such as your bank or HMRC, and persuades you to move money to their account. Here are some ways to protect yourself:<\/p>