Your Credit Score
Thinking about applying for credit? Check Your Credit Score for free, with no impact on your credit file.
How to improve your credit score
In this guide, we’ll cover the main things you need to know about building your credit score.
How do credit scores work?
There are three main credit reference agencies in the UK, each collecting information about you from public records, lenders and other service providers, before generating a ‘credit score’.
When you apply for credit, lenders and service providers usually contact their preferred credit reference agencies to check your credit record, highlighting any potential risk of offering you credit.
Why is a good credit score important?
- The higher your credit score is, the more likely it could be that an application for a mortgage, credit card, personal loan, overdraft or car finance will be accepted.
- Depending on the type of borrowing, the lowest and longest lasting interest rates might be offered to low risk applicants, who’ve shown they can manage credit well over time.
- Your credit score can also affect the amount of credit you’re offered.
- Bad credit might affect your ability to get some jobs, e.g. in legal or financial services.
Ways to improve your credit score
Below we’ve outlined some of the main things you could do to boost your credit score, potentially helping you to access new borrowing in future.
A summary on improving your credit score
It’ll take time, but building your credit score could give you access to better borrowing options.
- When you apply for credit, amongst other things, lenders and service providers check your credit record as part of their decision-making process.
- If you have a good credit score, you could be offered lower interest rates and higher credit limits.
- You might be able to build your score in a number of ways, from making sure you’re on the electoral register and managing accounts well, to limiting new credit applications.
- The information held by each credit reference agency can differ, so it might be a good idea to check your credit scores and reports with TransUnion, Experian and Equifax.