How to Improve Your Credit Score

Your credit score plays a big role in your life—from being approved for a mortgage or loan to getting better interest rates. Whether you’re starting from scratch or want to improve an already decent score, our guide can help.

What is a credit score?

A credit score is a number that represents how likely you are to repay borrowed money. It’s based on your financial history, including how reliably you’ve paid back previous debts. Lenders use this score to decide whether to offer you credit, and on what terms.

Your score can affect your ability to access a loan, credit card, or overdraft, your eligibility for the best mortgage deals, and even your ability to rent a flat. So, it’s worth understanding how it works. 

Remember 

There’s no one "official" score. Credit reference agencies like Experian, Equifax and Clearscore each calculate scores slightly differently. What matters is the story your financial behaviour tells lenders.

Tips on Managing Your Credit Score

Improving your credit score takes time and consistent financial habits. These practical tips can make a significant difference.

1. Check, Check, Check

Start by checking your credit report regularly using services from Experian, Equifax or Clearscore. These agencies offer free 'soft searches' that won’t impact your score.

Why check?

• You can spot and fix mistakes (like outdated addresses or incorrect missed payments).
• You can monitor signs of fraud.
• It gives you a clearer view of what lenders see.

If you spot an error, raise a dispute with the credit agency - it could be dragging your score down.

2. Build Your Credit History

A strong credit history shows lenders that you're reliable. Here’s how to start building it:

• Use a credit card responsibly, make small purchases and pay off the balance in full each month.
• Always make repayments on time.
• Pay more than the minimum due.
• Keep your credit usage low (see next tip!).

Tip: Before applying for credit, use an Eligibility Checker to reduce the risk of rejection and avoid multiple 'hard' credit checks, which can lower your score. 

3. Prove Who You Are and Where You Live

Registering on the electoral roll is one of the quickest ways to boost your credit score. It helps lenders confirm your identity and address.

You can do this in about five minutes at: Register to vote - GOV.UK

4. Keep Credit Utilisation Low

Credit utilisation is the percentage of your available credit that you’re using. Aim to keep it below 30%. So, if your credit limit is £1,000, try to use no more than £300.

High utilisation suggests you may be reliant on credit, which can lower your score, even if you make all your payments on time.

5. Avoid Multiple Credit Applications

Every time you apply for credit, a hard search is recorded. Too many applications in a short time can make you look like a risky borrower.

To avoid this:

• Space out credit applications.
• Use eligibility tools to see your chances before applying. 

6. Manage Debt Effectively

Outstanding debts affect your score, especially if you miss payments. Consider the following:

• Balance transfer cards: Move debt to a card with a 0% interest rate.
• Debt consolidation loans: Combine multiple debts into one manageable monthly payment.
• Prioritise paying off high-interest debts first.

Keeping debt under control not only improves your score, but gives you more breathing room financially.

7. Stay Alert to Fraud

A sudden drop in your credit score could signal identity theft. Regularly monitoring your credit file helps you catch fraudulent activity early.

If you spot something unusual:

• Contact the credit agency immediately.
• Use support services from agencies like Experian and Clearscore to resolve issues.

8. Talk About It

If credit feels confusing, you're not alone. Speaking to your bank or an independent service like Money Helper can make things clearer. Understanding your credit score is a key part of becoming more money confident.

As Carys Barnes TSB Head of PCA and Savings, says:

"Your credit score impacts so many parts of everyday life, yet many people don’t fully understand it. A strong score shows lenders you’re a reliable borrower, helping you get approved for loans—whether it’s for a car, mortgage, or credit card—and often means lower interest rates that could save you thousands over time. It can also make it easier to rent a home, get better insurance deals, and even qualify for things like phone contracts. Learning how your credit score works can boost your Money Confidence and improve your chances of accessing credit when you need it."

The Long-Term Payoff 

A better credit score can unlock more than just credit products—it can give you peace of mind, better interest rates, and greater control over your financial future. The steps may seem small, but they build up over time.

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