Improve your credit score in 12 steps

Want to improve your credit score? The trick is not to focus too hard on the number itself, and work on your credit health instead. Every step you take counts towards the end goal, whether you need a mortgage, a new car, a credit card, or something else.

Your score rarely changes overnight. It’s an accumulation of small gains. Habits that build bit by bit, each one taking you closer to making your goals a reality.

So wherever you’re at, wherever you’re heading, and whatever your score, these are the 12 steps you can take to improve and maintain your credit health. And they’re a lot easier to do with Checkmyfile. Log in now to take control of your credit health.

1. Register to vote

This is an easy one to tick off the list. Credit reference agencies use the Electoral Roll to verify your identity and your address. They also use it as the anchor for all other information. It takes about five minutes to do, and it’s super positive for your credit report. Register to vote here.

Not eligible to vote? Don’t worry – lenders will use other ways to verify your identity and address.

2. Check your credit report regularly

Just like checking your bank statements, checking your credit report regularly helps you stay on top of your financial situation. A credit report from Checkmyfile brings all the information held by Experian, Equifax and TransUnion into one place, making it easy to spot any problems – then fix them.

This is especially important if you know you’ve got a big change coming up, like applying for a mortgage. Check your credit report regularly, and you’ll know what lenders are likely to see when they run a search.

3. Correct errors on your credit report

Spotted something on your credit report that you don’t recognise, or that’s factually incorrect? We can point you to the source of the information – to help get it fixed as soon as possible. It all helps to improve your credit score.

When it comes to credit account information, your lenders are responsible for amending anything that’s wrong – and we always recommend contacting the lender first. If that’s not successful, we can help you raise a dispute and follow the process with you. It’s all part of your subscription.

4. Be consistent on credit applications

This one makes life simpler for the robots that process 99% of credit applications: use exactly the same name format on all your credit agreements and formal documents. Same for your address – use exactly the same format as it appears on the Electoral Roll (because you registered to vote with Step 1, right?)

The automated systems that most lenders use will thank you for it – and your applications will be smoother and more efficient.

5. Pay on time

The trick to credit health is proving you can stay in control of it. Lenders want to see that you can make payments on time and stay well within your credit limit.

That payment you forgot to make because you were on holiday? That still counts as a late payment and will show up on your credit report. The best way to avoid ever missing a payment is to set up a monthly Direct Debit for the minimum amount.

6. Time it right

The timing of your credit application can make all the difference. Check your report, and if a late payment from years ago is about to drop off, you may want to wait a few weeks to be in a better position. This works for all negative information on your report – which usually drops off after six years.

Similarly, if you think a big life event might be on the horizon soon (new house, new baby, new washing machine), then think about when your credit report might be looking its best.

7. Don’t max out your cards

When you apply for credit, lenders look at the total amount of credit you have, and how much you’re using. Any maxed-out credit cards are a warning sign that you might be taking on too much debt.

Even being a bit too close to your limit can make lenders less willing to approve your application – so it’s worth staying well below your credit limit, across all the cards you have.

Got into a tricky situation with debt? The charity Step Change can help. Find out more.

8. Don’t make too many credit applications at once

Applying for lots of credit cards or financial products in a short space of time can reduce your chances of success. Why? Because lenders see it as a sign that you might be desperate for credit – and therefore be less likely to be able to pay.

So, space out your applications. We recommend no more than one every 4-6 weeks. And if you’re about to apply for a mortgage, you want your credit report to be as sparkly as possible, so try not to make any other applications in the three months before your mortgage application.

9. Check your financial associations

When you take out a joint account with someone, like a partner, or with your flatmates to pay bills, they become a financial association.

While associations don’t directly impact your credit report or credit score, they can affect your credit applications. Lenders can choose to search the credit reports of your associations as part of the application process – and anything they find there may influence their decision.

This doesn’t happen for every application, but it’s always a possibility. So, if you no longer use a joint account, it’s worth closing it. If your report shows the account as closed after six weeks, you can contact the agencies to request a disassociation. Or, if you’ve got a Checkmyfile subscription, we can do it for you – quicker and easier than contacting three different agencies.

10. Check addresses on old accounts

Keep your address up to date on all your accounts. It’s one of those admin tasks that goes with moving home – really boring, but really important.

One thing that makes it slightly easier: check all your addresses in one place on your Checkmyfile credit report, and spot any outdated ones you might have missed.

If you find an address you really don’t recognise, get in touch with us and we can help you pinpoint the detail to get it changed or removed.

It’s worth adding here that you might see the same address in different formats on your report – this is to do with the different formats that lenders have on their records. It doesn’t impact your credit score as long as it’s a recognised address (but it’s still worth sticking to one format on all your credit applications).

11. Check your credit report after rejection

If your credit application gets rejected, it’s a good idea to check your credit report. It might be that there’s an error on it that’s easily fixed, which could improve your chance of success next time. If there’s nothing to fix, then it might just be that you didn’t match the lender’s criteria for an ideal customer.

While we’re on it, let’s bust a popular myth: getting rejected for credit doesn’t negatively impact your credit score. The outcome of credit applications is not recorded on your report. The only thing that can be seen as a negative is if you have lots of applications in a short space of time (see Step 8 for more on this).

12. Keep on top of it all with Checkmyfile

OK, so of course we’d say this, but the easiest way to keep your credit health ticking over is with a subscription to Checkmyfile.

We give you the most detailed credit report you can get. Plus the expert help when you need it – whether it’s correcting errors, protecting yourself from fraud, or knowing what to do to grow your score. We’re with you at every step, giving you the clarity you need to stay in control of your credit health.

Subscribe now