How can I improve my credit score?

Everyone has an Experian Credit Score. Looking after it, nurturing, growing and improving it can help you get a better rate on loans, credit card or mortgages. Some simple steps can help you improve your credit score:

  1.  Stay within credit limits and keep balances low – The lower your overall balances (not including mortgage), the better.
  2.  Try not to make too many applications for credit – each application is recorded on your credit report – the fewer you’ve made in the last 6 months, the better.
  3. Make sure all bills are paid on time – Missed or late payments can have a big impact, but paying on time can really help your score.
  4.  Register to vote at your current address – lenders use the electoral roll to help confirm who you are and where you live.
  5. Review your credit report regularly – make sure it’s up to date and in good shape for when you’re ready to apply for credit.

It can also help you keep an eye on your progress while you maintain or improve your credit score before you apply.

When you make an application for a loan, credit card, mortgage or other type of credit (such as a new utility contract or mobile-phone account), lenders look at your credit report to work out a credit score for you.  They do this so they can judge for themselves if they think you’ll be a responsible borrower and likely to repay what you owe them.

There is no ‘one’ universal credit score. Different lenders can score differently, using their own formulae based on their own factors – there really is no ‘magic number’.

Usually, a higher score means you’re seen as lower risk – meaning you’re more likely to get credit, and at better rates.

The Experian Credit Score is a guide to help you understand your credit report, and how the way you’ve managed the credit you’ve had in the past might affect applications you’re making now.  Your Experian Credit Score is not set in stone – it’s a living, breathing thing and it changes along with your own financial behaviour. Getting your credit score up could open up the potential chance to get better loans – and at better rates.

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