How credit scores work in the UK, and how to improve yours
There is no single UK credit score: lenders use your credit reports to decide. How the three agencies work, how to check your report free and how to improve it.
When you apply for a credit card, loan, mortgage or phone contract in the UK, the lender looks at your credit report to decide whether to lend and at what rate. Understanding what lenders see puts you in a much stronger position. This guide explains how credit scores work in the UK, what is on your credit report, how to check it for free and practical ways to improve your credit score.
There is no single credit score
Three credit reference agencies hold most of the information: Experian, Equifax and TransUnion. Each keeps its own report on you and shows its own score, on its own scale. Lenders do not use these consumer scores directly; they combine your report with the information on your application and their own criteria. A "good" score on an app is a useful guide, not a guarantee of approval. Two lenders can reach different decisions on the same person.
What is on your credit report
Your report lists your credit accounts and how you have repaid them over the past six years, including missed payments, defaults and county court judgments. It records whether you are on the electoral roll, links to anyone you share finances with, and recent credit applications. It does not include your salary, savings, council tax band or medical information.
Checking your credit report for free
You have a legal right to see your statutory credit report from each agency free of charge, and all three offer free online access to your report and score, directly or through partner services. Checking your own report does not affect your score. Look for accounts you do not recognise, which could signal fraud, and for errors such as a paid-off debt still showing. You can ask the agency to correct mistakes, and add a short notice of correction to explain special circumstances, such as a missed payment during an illness.
How to improve your credit score
Register on the electoral roll at your current address; it helps lenders confirm who you are. Pay every bill on time, ideally by direct debit, because late payments do lasting damage. Keep credit card balances well below their limits, since using most of your available credit suggests strain. Avoid making lots of applications in a short time, and use eligibility checkers, which use a "soft search" that lenders cannot see, before you apply.
If you have little credit history, for example because you are young or new to the UK, a credit-builder card used for small purchases and paid off in full each month can help build a record over time. Some services also let you add rent payments to your credit file.
Joint finances and your credit file
If you share a joint account or loan with someone with a poor history, their record can affect yours, because the agencies create a financial link between you. If you separate, ask the agencies for a notice of disassociation, so their future behaviour does not affect your applications.
Why your credit score matters
A stronger credit file gives you access to cheaper credit and better deals. On a mortgage, being offered a slightly lower rate can save thousands of pounds over the term. Use our loan calculator to see how much the rate changes your repayments.
Credit and your wider finances
Good credit is easier to keep when you have savings to fall back on. Keeping an emergency fund in a cash ISA or easy-access account means you will not need to borrow for surprises; see our guide to the ISA allowance. If you are self-employed, filing your Self Assessment return on time also helps when lenders ask for proof of income.
Frequently asked questions
Which credit score do UK lenders use?
Lenders use your credit report plus their own criteria, not the consumer scores shown by the agencies.
Does checking my own credit report hurt my score?
No. Checking your own report is a soft search that lenders cannot see.
How long do missed payments stay on my report?
Credit information, including missed payments and defaults, usually stays on your report for six years.
Sources
This article is general information, not financial advice.