A strong credit rating can make life much easier. Whether you’re applying for a mortgage, a car loan, a mobile phone contract or even certain jobs, your credit history plays a crucial role. If your score isn’t where you’d like it to be, don’t worry, there are practical steps you can take to improve it. Here are 10 smart ways to give your credit rating a meaningful boost.
1. Check Your Credit Report Regularly
One of the smartest things you can do is review your credit report for errors or suspicious activity. In the UK, you can check your report for free with credit reference agencies like Experian, Equifax or TransUnion.
Mistakes such as incorrect addresses, outdated accounts or signs of identity fraud can drag down your score unnecessarily. If you spot an error, contact the credit agency to have it corrected.
2. Register on the Electoral Roll
Lenders want to confirm who you are and where you live. Being on the electoral roll at your current address helps verify your identity, making you appear more stable and reliable.
You can register online through the GOV.UK website. It’s a simple step that can have a noticeable effect on your credit score.
3. Pay Bills on Time
Your payment history is one of the most important factors influencing your credit rating. Missed or late payments can stay on your report for years.
Set up direct debits or reminders to ensure your bills are paid on time. Even something as routine as a phone bill can impact your credit score if you forget to pay it.
4. Reduce Your Credit Utilisation
Credit utilisation refers to how much of your available credit you’re using. Try to keep this below 30 percent if possible. For example, if your credit limit is £1,000, try not to use more than £300.
Keeping your balances low shows lenders that you’re managing your credit responsibly.
5. Avoid Making Multiple Credit Applications
Each time you apply for credit, a hard search is recorded on your file. Too many applications in a short time can make you look financially unstable.
Before applying, use eligibility checkers to see which products you’re likely to be accepted for. These use soft searches, which don’t affect your credit rating.
6. Keep Old Accounts Open
The length of your credit history matters. Closing old accounts, especially those with a good payment record, can shorten your credit history and reduce your score.
As long as there are no fees involved and you’re not tempted to overspend, keeping older accounts open can work in your favour.
7. Pay More Than the Minimum
Paying only the minimum on credit cards might keep you out of trouble in the short term, but it makes it harder to clear your debt and may indicate to lenders that you’re financially stretched.
If you can, pay off more than the minimum each month. Better yet, pay off the full balance to avoid interest charges.
8. Use a Credit Builder Card
If you’ve got little or no credit history, or you’re trying to recover from past issues, a credit builder card can help.
These cards usually have low limits and high interest rates, so it’s important to use them wisely. Make small purchases and pay off the full balance each month to demonstrate responsible borrowing.
9. Deal with Outstanding Debts
Unpaid debts can severely damage your credit score, especially if they result in defaults or County Court Judgements (CCJs).
Prioritise paying off debts and, if you’re struggling, contact your creditors to set up a manageable repayment plan. Many lenders are willing to work with you to find a solution.
10. Avoid Financial Links with People Who Have Poor Credit
If you’ve taken out joint credit or opened a shared bank account with someone who has a poor credit history, their financial behaviour could affect your own rating.
If you’re no longer financially connected, request a ‘notice of disassociation’ from the credit agencies to remove that link.
Improving your credit rating isn’t about quick fixes. It takes time, consistency and smart habits. By taking a few thoughtful steps and staying on top of your finances, you can gradually raise your score and unlock better financial opportunities.
Start today – check your credit report, take control of your payments and make those small changes that lead to big results.