How to improve your credit score

If you've been turned down for credit or are concerned that your credit history could stop you from getting a mortgage, credit card or loan, don't despair. There are steps you can take to improve your credit rating.

In this guide, you will find out what makes a good credit score, plus 16 tips to improve your credit rating, and indications of how quickly changes can happen.

What is a good credit score?

There's no single, universal credit 'rating' or 'score' that a lender will use when deciding whether or not to accept you as a customer. Neither is there such a thing as a 'credit blacklist'.

The scores you may have seen advertised by credit reference agencies (CRAs), such as Experian, are simply indicators of your creditworthiness, which is based on the information held in your credit report.

Each of the UK's three main credit reference agencies has a scale for what it considers a 'good' or 'excellent' credit score.

• Equifax 531 to 670 is good, while 811 to 1,000 is excellent
• Experian 881 to 960 is good, and 961 to 999 is excellent
• TransUnion 604 to 627 is good, while 628 to 710 is excellent

Although it can help to have a 'good' or 'excellent' credit score, on its own, it's not a guarantee that all lenders will extend credit to you or treat you in the same way. Each lender has its own system for deciding whether or not to lend to you, so you could be rejected by one but accepted by another.

If you have a low or 'bad' credit score, you're more likely to be turned down when you apply to borrow money, or offered less favourable interest rates, in which case you should take steps to improve your score. 

Read on to uncover our 16 tips to improve your rating.

• Find out more: how to check your credit score for free

How to improve your credit score

From registering to vote to keeping your credit usage low, check out our quick and easy tips for improving your credit score.

1. Check your credit report and correct mistakes

These days, it's worth checking your credit report at least once a year to make sure the information it contains is correct and up to date.

With the rise in identity theft and fraud, it's good practice to keep a frequent watch on the information being recorded in your credit report.

You should check each of the three main CRAs (Equifax, Experian and TransUnion). They must offer your statutory credit report for free.

If you notice any mistakes, get them rectified as soon as possible to ensure they aren't dragging down your credit score unnecessarily and won't have any adverse effect on future credit applications.

You can do this by contacting the company that provided the incorrect information or the credit reference agency itself, which will investigate on your behalf.

Note that it's also a good idea to make sure all of your accounts, whether you use them or not, have your correct details. Inconsistencies in addresses between accounts, for instance, can result in you failing application ID checks.

How long will it take to correct mistakes on your credit report? Correcting an error can be one of the fastest ways to change your score. By law, your credit report should be accurate. Lenders and CRAs have up to 28 days to respond to a dispute; Experian says it usually resolves issues in less than two weeks.

2. Register to vote

If you're not on the electoral roll, you could find it very difficult to get credit. The electoral roll is used to confirm that you live at the address given in your application - a key part of the identity checks that lenders have to carry out.

Experian, the largest CRA in the UK, says registering to vote can boost your score by as much as 50 points.

You can register to vote online at any time through the register to vote website - it only takes five minutes.

If you can't register to vote, your applications may take longer to process and could even be rejected. However, you can add a note to your report explaining why you can't register to vote to help avoid delays.

For instance, if you are a non-EU foreign national, you can request a notice of correction to be added to your credit file that says you have proof of residency. See this guide from Equifax for an example of the wording to use.

How long will registering on the electoral roll take to boost your score? Registering to vote can raise your score within six to eight weeks, as councils send data to CRAs every month.

3. Make your rent payments count

Tenants often pay more in monthly payments than homeowners do, yet they can still find it difficult to prove they can afford to repay a loan such as a mortgage.

Private, council and social housing tenants can now get this record of making regular payments added onto their credit report and improve their credit score via a rent reporting platform.

Council or social housing tenants should ask their landlord to report the rental payments they make to a free scheme called The Rental Exchange and information will appear on their Experian credit report.

Tenants renting through a private landlord or letting agent can also ask them to report rental payments to The Rental Exchange or they can choose to self-report via CreditLadder oder Canopy.

• CreditLadder reports rent payments to all three CRAs. This service costs £5 a month, although you can access it for free if you opt to report to just one agency.
• Canopy offers a similar service - RentTracking will report payments to Experian for free, and to all three for £7 a month.

CreditLadder and Canopy use open banking, which allows them to track the rental payments being made each month through your current account - with your permission. 

If you make your rental payments on time, getting your rent on your credit report is likely to boost your credit score.

In addition, Loqbox has a feature called Loqbox Rent which tracks and reports rent payments to Experian. It is designed to build renters’ credit score, which helps to you more eligible for a mortgage in the future.

How long will rent reporting take to boost your score? If you use CreditLadder, rent payments will appear on your Experian, Equifax and TransUnion reports within eight weeks. Canopy reports data to the CRAs two months after the date you set up tracking but it can take up to six months for them to appear in your credit report. 

4. Use Experian Boost to report council tax, Netflix subscriptions and savings

The Experian Boost tool helps you quickly improve your credit score.  

It uses open banking, by which you grant Experian access to your current account information.

The tool allows it to unlock previously hidden information on your salary, council tax payments, savings habits and even your subscription payment information.

• Find out more: Experian Boost explained

5. Use 'soft' searches for new credit

When you apply for credit, a lender will perform a 'hard' credit search to check if you are eligible. This will leave a 'footprint' on your credit file, which will be visible to other lenders.

It's worth asking lenders to perform a 'soft' search instead to give you an idea of whether your application would be accepted, as well as what interest rate you'd be charged - and it won't be visible to other lenders on your credit report.

More and more lenders are offering soft searches, including on loans, credit cards and mortgages.

How long will this take to boost my score? Using soft searches won't boost your score, but it can help protect it. By not using hard searches, your score will remain intact while you're shopping around for a new mortgage, loan or credit card.

• Find out more: Which? can help you find the best credit card deals, best personal loans and best mortgage rates

6. Avoid multiple applications

If you've recently been turned down for credit, it's unwise to apply for another credit card or loan immediately, as multiple applications over a short period of time may suggest to lenders that you're in financial difficulty.

Spread out loan and credit card applications by at least three, if not 12, months. Each application, whether successful or not, shows for 12 months, but generally only has an impact in the first three months.

7. Keep your credit usage low and never withdraw cash

When assessing your risk, lenders will look at not only your outstanding balances but also how much credit you have available.

If you have low available credit, prospective lenders may see this as a sign that you're not successfully managing your finances.

Keeping your balance below 30% of the limit will boost it by 90 points, while keeping your credit-card balance below £50 can give you a boost of 60 points.

Never withdraw cash on a credit card unless you are using an overseas card designed for this purpose, as lenders may interpret this as poor financial management.

How long will this take to boost my score? Data from finance providers is usually fed through to CRAs every four to six weeks. So if you can reduce your overall credit usage to around a third of your overall limit across your cards, you can help boost your score fairly quickly.

8. End financial associations with ex-partners

Living with or being married to someone who has a bad credit rating won't affect yours, but taking out a joint financial product with them will.

Opening a joint current account, for example, will create a 'financial association' between you and the other account holder.

Lenders may look at their credit report as well as yours when assessing your application, as their circumstances could affect your ability to make repayments.

If you have ever jointly held a financial product with someone you no longer have a relationship with, ask all three credit reference agencies to break this link so that your ex-partner's financial situation doesn't have an impact on any credit applications you may make in the future.

How long will this take to boost my score? Breaking a financial link with an ex-partner or 'disassociating' could boost your score within a month.

9. Avoid CCJs and bankruptcy

Being declared bankrupt, entering into an individual voluntary arrangement (IVA) or having a county court judgement (CCJ) made against you will badly affect your creditworthiness.

According to Experian, receiving a CCJ will knock 250 points off your score, and defaulting on an account will mean a 350-point reduction.

So it's worth checking if there are any alternatives to these routes if you are in financial difficulty.

Usually, it takes six years for IVAs or CCJs to disappear from your credit report. At that point, you should see an immediate change in your score.

• Find out more: how to pay off your debts 

10. Pay more than the minimum

Making only a minimum repayment on your credit card each month may lead lenders to assume you're struggling to clear your debts.

Instead, try paying more than the minimum, or even the full amount, each month to help you clear your debt faster.

Use our free credit card repayment calculator to help you work out how long it will take you to repay in full the balance on your credit card, and what the total cost will be.

11. Never miss a repayment

Showing that you can repay on time and stay within the credit limit you've been given will help convince lenders you're a responsible borrower. 

If you find it challenging to consistently pay bills on time every month, consider making payments via direct debit.

Inform your lenders as soon as possible if your debts are proving difficult to handle. It's better to seek their help than to repeatedly miss loan or credit card repayments with no explanation.

If you are late with a payment or miss one, it will show up on your report within a month. One late payment on a credit card or loan can dent your score by as much as 130 points, according to Experian.

A missed payment will show on your report for six years, although its impact will lessen. If you've missed only one payment, your score could start to recover after around six months and should be fully recovered after a year.

• Find out more: free debt advice contacts

12. Use a credit builder credit card

If you've never borrowed money before, you might assume this means you have a good credit score. But this is unlikely to be true.

Lenders look for evidence that you'll be able to pay back what you borrow, so having no record of successful repayments can count against you.

Experian estimates 5.8m people have a 'thin' or non-existent credit file in the UK. This means that CRAs hold little or even no information on you, which makes you invisible to the financial system. This can lead to not being able to access products such as a mortgage, loan or credit card, or facing higher costs than others.

Consequently, you may find that you're turned down for a credit card or loan - especially one at the cheapest rate - even if you could comfortably afford to pay them back.

One solution is to take out a credit card specifically designed to help you build - or rebuild - your credit history.

Because these 'credit builder' cards are aimed at higher-risk customers, APRs tend to be very high, so you should never use them to borrow.

How long will this take to boost my score? It takes six to 12 months of paying on time for someone who's never officially borrowed before to improve their credit score.

• Find out more: best credit cards for bad credit

13. Get your name on some bills

According to Credit Karma (powered by TransUnion data), the 'gender credit score gap' is caused by women not having financial products in their own name.

The research found that 31% of women had some or all of their financial agreements in their partner's name and were therefore less likely to have a credit card, mortgage or personal loan.

If you don't have a loan or credit card, putting things like a mobile phone and utility bill in your name will help build your score.

14. Avoid payday loans

Payday loans are typically very high-cost compared to other forms of borrowing.

According to Experian, taking out a payday loan won't usually damage your credit score, but lenders all have their own individual criteria for approving applications.

A mortgage lender, for example, might view the use of payday loans as an indicator of financial difficulty or poor budgeting, and on that basis may deny an application.

• Find out more: how to complain about a payday loan company

15. Consider keeping old accounts open

If you have older accounts that have been managed well, it could be worth holding onto them.

CRAs will consider how long you've held accounts for, and look more favourably on those who doesn't frequently open and close them. That said, having too much unused available credit can make some lenders nervous, so it's worth being judicious in how many accounts you keep open.

• Find out more: best bank accounts for overdrafts

16. Don't take unnecessary payment holidays

If you're feeling financially overwhelmed, you might be wondering if a break from monthly payments is a good idea. For instance, your mortgage lender may authorise you to pay less each month, or even take a payment holiday for a certain amount of time.

This may prove an invaluable means of managing your cash flow in the short term, but bear in mind that any such arrangement is likely to be noted on your credit record and may impact your future borrowing options - so only take a payment break if you really need to.

How fast can you raise your credit score?

Improving your credit score is a marathon, not a sprint.

Some actions may effect a swift change, but credit scores are determined by a combination of factors, so you may have to address a number of issues over time to see a difference.

Credit score FAQs

Got a burning credit score question? See if we've covered it in the Q&A below.

Does Klarna affect your credit score?

Klarna started reporting to Experian and TransUnion for all purchases made with its Pay in 30 or Pay in 3 schemes (including via a Klarna Card or in-app shopping) placed on or after 1 June 2022.

However, this borrowing isn't currently factored into your credit score  as agencies and lenders need time to update their credit scoring systems. 

Why have I got a bad credit score?

There are a range of reasons you could have a bad or low credit score. You should check your credit report at all three CRAs and see if all the information is correct. You might not be registered on the electoral roll, have been late or missed payments on credit products in the past, been declared bankrupt or have a CCJ made against you that could be dragging your score down.

Why can having no debt give you a bad credit score?

If you have never borrowed money, you might assume this means you have a good credit score. In fact, this is unlikely to be true. That's because, when assessing your application, lenders look for evidence that you'll be able to pay back what you borrow, so having no record of successful repayments can count against you. Consequently, you may find you are turned down for market-leading credit cards and loans even if you could comfortably afford to pay them back.

What should I do if I'm refused credit?

If you're refused credit, you don't have a legal right to be told why. If a rejection is based on information obtained from a CRA, the creditor must simply tell the borrower that this is the case and provide details of the agency concerned. They are not obliged to offer any further information, but it is always worth asking. 

If you feel you've been turned down for credit unfairly, you can appeal and supply further information to support your application. If the decision not to lend to you was made by an automated system, you can ask for this to be reviewed. Should you still find yourself unable to get the credit you originally applied for, it's important not to apply for another credit card or loan immediately, as this could cause you further problems. Instead, you should check your credit report and take steps to improve your credit rating before trying to borrow from another lender.