Improve Your Credit Score

Improve your credit score

6 ways to improve your credit score

Need to improve your credit score? Well, you’ve come to the right place. No matter if you’re trying to recover from past financial difficulties, or you need to build it from scratch, there are plenty of things you can do to boost your score. Here, we run through six of them. All Baffle free, of course.

Tips to improve credit rating guide image

Representative 15.9% APR (Variable)

Representative example: If you borrow £7,500 over 5 years at a Representative APR of 15.9% and an annual rate of 15.9% (fixed) you would pay £177.82 per month. Total charge for credit will be £3,169.20. Total amount repayable is £10,669.20. Minimum repayment period is 12 months. The %APR rate you will be offered is dependent on your personal circumstances. Freedom Finance is a leading credit broker and not a lender.

1. Check for errors on your credit report

Spotted an error on your credit report? If the answer is yes, you’ll need to request a correction as soon as possible. Your credit score is based on your credit report. So, if there are errors, your score can be negatively affected. Look out for things like incorrect previous addresses, old credit accounts showing as active, and any signs of fraudulent activity. 

Think you might be a victim of fraud? Notify your bank or credit provider straight away and report it to Action Fraud.

2. Register on the electoral roll

Registering on the electoral roll can be an easy way to boost your credit score. It helps credit reference agencies verify your address, so if you do decide to apply for a loan or credit, lenders have a clearer picture of your credit history.

Live in the UK and want to register to vote? Apply to join the electoral roll here.

3. Keep on top of monthly repayments

If you are currently repaying any debt, making sure you pay the minimum monthly repayment on time, every month can help improve your credit score. This is because it indicates to other lenders that you are in control of your finances, making you appear a reliable person to lend to.

4. Regularly use a credit card for small payments

If you’ve got no credit history at all, regularly using a credit card for small amounts is a good way of building a credit profile from scratch. Be sure to pay off the credit you owe at the end of each month though, otherwise it can have a negative impact on your score.

5. Avoid multiple credit applications

Making lots of credit applications in a short space of time can be a red flag for lenders. This is because it can suggest anything from fraudulent activity on your account to applying for more credit than you can afford. If you do get rejected for a loan or credit, don’t apply again immediately as it can reduce your score.

6. Cancel any unused credit cards and overdrafts

Keeping multiple unused credit cards or overdrafts active can impact your credit score. This is because the more credit available to you, the higher the amount of debt you have the potential to owe. So, by closing these accounts, you’ll appear less risky to potential lenders.

For more information about what impacts your credit score and how it can affect you, read our guides:

Understanding credit scores

The cost of a low credit score

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