How to Improve Your Credit Score UK: 10 Proven Strategies

Register on the Electoral Roll

One of the simplest yet most effective ways to improve your credit score is to register on the electoral roll (also called the electoral register).

Importance of electoral roll registration for credit verification

Lenders use electoral roll information to verify your identity and address, which are fundamental elements in credit scoring. Being registered:

• Proves your stability and residence at your current address
• Makes you appear more trustworthy to potential lenders
• Can increase your credit score by up to 50 points with some agencies
• Reduces the risk of identity fraud

Research shows that people not registered on the electoral roll are three times more likely to be declined for credit compared to those who are registered.

Steps to register in the UK

Registration is straightforward and can be completed online in just a few minutes:

1. Visit gov.uk/register-to-vote
2. Provide your name, address, date of birth, and National Insurance number
3. Complete the submission

Key Points:

• Registration typically takes about 5 minutes online
• Updates to the register occur monthly
• You’ll need to re-register if you move house
• Even if you choose not to vote, registration still benefits your credit score

If you’re not eligible to vote in the UK (such as foreign nationals), provide lenders with proof of residency through utility bills or bank statements when applying for credit.

Maintain Low Credit Utilisation

Credit utilisation refers to the percentage of your available credit that you’re currently using. It’s one of the most influential factors in credit scoring.

Understanding credit utilisation ratios

Your credit utilisation ratio is calculated by dividing your current debt by your total available credit limit and multiplying by 100. For example:

• If you have a credit limit of £10,000 across all cards
• And current balances total £2,500
• Your credit utilisation is 25%

Lower ratios demonstrate responsible credit management. Financial experts recommend:

Tips to manage and reduce credit usage

1. Spread balances across multiple cards rather than maxing out one card
2. Request credit limit increases (but don’t spend more as a result)
3. Pay balances twice a month to keep reported utilisation lower
4. Keep old accounts open to maintain a higher total available credit
5. Set up balance alerts to notify you when approaching 30% utilisation

Example: Sarah had three credit cards with a combined limit of £6,000 but consistently carried balances totalling £4,800 (80% utilisation). By paying down £3,000 and requesting a modest credit limit increase, she reduced her utilisation to 25%. Within three months, her credit score increased by 45 points.

Make Payments on Time

Your payment history accounts for approximately 35-40% of your credit score calculation, making it the single most important factor.

Setting up direct debits and reminders

Late or missed payments can remain on your credit file for up to six years. To maintain a positive payment history:

1. Set up direct debits for at least the minimum payment on all accounts
2. Schedule payments a few days before the due date to allow for processing
3. Create calendar alerts as backups
4. Use banking apps with payment reminders and notifications
5. Consider automatic payments for the full balance if affordable

Even a single late payment can decrease your score by up to 130 points, and recovery can take 6-12 months of perfect payment behaviour.

Impact of payment history on credit scores

Consistent, on-time payments build a strong foundation for your credit score. Credit reference agencies track:

• Whether payments were made on time
• How many days payments were late
• How recently any late payments occurred
• The number of accounts with late payments

Action Steps:

• Review all your financial obligations and ensure automated payments are set up
• If you struggle to make a payment, contact your lender before the due date
• Consider consolidating multiple payment dates to simplify management
• Check your accounts regularly to ensure payments are processing correctly

If you’ve missed payments in the past, rebuilding takes time but consistent on-time payments will gradually improve your score.

Avoid Multiple Credit Applications

Every time you apply for credit, it typically results in a “hard search” on your credit file, which can temporarily lower your score.

Difference between hard and soft credit checks

Hard checks:

• Appear on your credit report
• May affect your score
• Remain visible for 12 months
• Suggest you might be in financial difficulty if there are many in a short period

Soft checks:

• Not visible to lenders
• Don’t affect your credit score
• Include checking your own credit report
• Often used for pre-approval offers

Multiple applications in a short timeframe can reduce your score by 5-10 points each and suggest financial desperation to lenders.

Strategies to minimise credit inquiries

1. Use eligibility checkers before applying for credit products
2. Space out applications by at least 3-6 months when possible
3. Research thoroughly to apply only for products you’re likely to qualify for
4. Get pre-approved before major applications like mortgages
5. Consider “soft search” product comparisons offered by many comparison websites

Example: Tom was declined for a premium credit card and immediately applied for three more cards on the same day. Each application generated a hard search, and his score dropped by 45 points. Had he used eligibility checkers first, he would have discovered he only qualified for one of those cards.

Use a Mix of Credit Types

Lenders like to see that you can handle different types of credit responsibly. A diverse credit portfolio can positively impact your score.

Benefits of having diverse credit accounts

A healthy credit mix might include:

• Revolving credit (credit cards, store cards)
• Installment loans (personal loans, auto loans)
• Mortgage
• Mobile phone contracts

Having various types of credit demonstrates:

• Experience managing different payment structures
• Ability to handle various financial commitments
• Financial maturity and stability

Research indicates that people with a mix of credit types typically have scores about 30 points higher than those with only one type of credit.

Managing different credit products responsibly

While diversity is beneficial, quality matters more than quantity:

1. Don’t open accounts just to create a mix – only apply for credit you need
2. Start small if you’re new to credit – perhaps with a mobile phone contract and a credit builder card
3. Gradually add different types as your needs naturally evolve
4. Close accounts sensibly – keep your oldest accounts when possible
5. Monitor all accounts regularly – even those you rarely use

Key Points:

• A diverse credit portfolio can boost your score by 5-10%
• Even small forms of credit like catalogue accounts contribute to your mix
• Quality of payment history still outweighs credit mix
• Having too many accounts can become difficult to manage properly

Keep Old Credit Accounts Open

The age of your credit accounts significantly impacts your credit score, with older accounts generally being beneficial to your overall rating.

How account age influences credit scores

Credit scoring models consider several age-related factors:

• Age of your oldest account
• Average age of all your accounts
• Age of specific types of accounts
• How long since you last opened a new account

Older accounts:

• Provide longer payment history data
• Show sustained relationships with lenders
• Demonstrate credit stability
• Can increase your average account age

In the UK, accounts typically remain on your credit file for six years after closure. The longer your credit history, the better – accounts 5+ years old are particularly valuable.

Deciding which accounts to keep active

Not all old accounts are worth keeping. Consider these factors:

1. No annual fees – Keep older accounts that don’t cost you money
2. Occasional use – Make small purchases every few months to keep accounts active
3. Good terms – Retain accounts with favorable interest rates or benefits
4. Contact information – Ensure the lender has your current details to prevent fraud
5. Management ease – Balance the benefit against the complexity of managing multiple accounts

Action Steps:

• Keep your oldest credit card active with occasional small purchases
• Set up a small recurring payment (like a streaming service) on old cards
• Store old cards securely rather than carrying them daily
• Review inactive accounts periodically for suspicious activity

If you must close accounts, start with newer ones and retain your longest-established credit relationships.

Consider a Credit Builder Card

If you have limited credit history or past credit problems, credit builder cards can be an effective tool for improving your score.

How credit builder cards work

Credit builder cards:

• Are designed for people with poor or limited credit history
• Typically have higher interest rates (25-59% APR)
• Start with lower credit limits (often £200-£1,500)
• Report payment behaviour to credit reference agencies
• Can improve your score when used responsibly

With responsible use, many users see significant improvement in their credit scores within 6-12 months, potentially qualifying for better financial products thereafter.

Choosing the right card for your needs

Several UK providers offer credit builder cards, each with different features:

1. Compare eligibility using soft search tools before applying
2. Look for no annual fees when possible
3. Consider additional benefits like free credit score access
4. Check if credit limit reviews are offered after good payment history
5. Research customer service reputation of different providers

Example: Michael had a poor credit history following financial difficulties. He obtained a credit builder card with a £200 limit, used it for small purchases, and paid the balance in full each month. After 8 months, his credit score increased by 76 points, and his credit limit was increased to £500.

Key Points:

• Always pay the full balance monthly to avoid high interest charges
• Keep utilisation below 30% of your limit
• Set up direct debits for at least the minimum payment
• Track your progress with regular credit score checks

Seek Professional Advice if Needed

Sometimes credit issues stem from deeper financial problems that require professional guidance.

When to consult financial advisors

Consider seeking help if:

• You’re struggling to meet minimum payments
• Your debts are increasing despite your best efforts
• You’re using credit to pay for essentials regularly
• You’re unsure which debts to prioritise
• Your credit score isn’t improving despite following best practices

Early intervention can prevent small issues from becoming major problems and protect your credit score from severe damage.

Resources for debt management and credit counselling

The UK offers several free resources for financial advice:

1. Money Helper – Government-backed free guidance and tools
2. StepChange – Free debt advice charity
3. Citizens Advice – Free, independent advice
4. National Debtline – Free debt advice service

These organisations can help with:

• Debt management plans
• Individual Voluntary Arrangements (IVAs)
• Debt Relief Orders
• Budgeting assistance
• Credit rebuilding strategies

Action Steps:

• Don’t wait until crisis point to seek help
• Be honest about your financial situation when seeking advice
• Follow through with recommended action plans
• Continue monitoring your credit report during the recovery process

Professional advice is particularly valuable when dealing with complex situations like defaults, County Court Judgments (CCJs), or bankruptcy.