Credit scores

This is a tool used by lenders to help decide if you qualify for a particular mortgage, loan, or credit card. It uses the information that appears on your credit report as well as any additional information you supplied with your application.

A mathematical model is used to calculate a numerical score that represents your credit history. This indicates what type of borrower you are and how likely it is that you’ll pay the money back.

To get a credit report you can visit ClearScore, Equifax, Experian or Credit Karma. Best of all, it’s free and always will be!

There are ways you can improve your credit score and we’ve put together a list of things you can do:

1. Pay off any outstanding debt – an obvious one but this will significantly improve your score.
2. Register to vote – if you’re on the electoral roll, credit agencies use this to find public information on you to make sure your address is up to date.
3. Don’t apply for too many products at once – lenders can see what credit applications you’ve made and too many in a short space of time raises alarm bells.
4. Correct any mistakes on your report – make sure everything is up to date and ensure the right personal information is present. Challenge anything that looks suspicious or fraudulent.
5. Make repayments on time and in full – a direct debit can help to make sure you can sensibly manage credit by paying off existing products e.g. mobile phone bill.
6. Take on credit if you have none to your name – actually having no credit can lower your score. If there is no debt on your report, lenders like to see proof that you can handle credit before agreeing to give it to you.