How Can I Boost My Credit Score Quickly?

29th Oct 2024

Your credit score is the most important single factor in determining whether you can easily get credit, such as a personal loan, car loan, mobile phone contract, or even the best rates for utility bills. Many of the most favourable deals are available only to those who pay their bills automatically by direct debit—a payment option often requiring a good credit score. If you’re struggling to access the great deals you see advertised, this could be because your credit score is ruling you out. While there aren’t many quick fixes, there are several things you can do to improve your credit score and make yourself look more attractive to lenders.

Understanding Your Credit Report

In the UK, the three main credit bureaus—Experian, Equifax, and TransUnion—each have their own way of calculating credit scores and use a slightly different rating scale.

• Equifax: Scale goes to a maximum of 1000, with 600 and over considered good.
• Experian: Scale goes up to 999, with 600 on their scale ranked as “poor”.
• TransUnion: Scale goes up to 710, with 600 being considered only “fair”.

So it’s important to know what scale you are dealing with, and more important to know whether you are rated as poor/average/good rather than knowing the absolute number.

Tips to Boost Your Credit Score

The first thing to say is that improving your credit score is not a quick fix, one week job. Lenders are looking at your pattern of behaviour over a period of time. Paying all your bills on time one month isn’t enough; they will want to see proof that you can do this for six months, a year, or more. Some of the key actions you can take to improve your credit rating are:

• Register to Vote: One of the easiest steps is to ensure you're on the electoral roll at your current address. This helps lenders verify your identity and residence and can be easily done through the government website.
• Make Timely Payments: Paying your bills and loans repayments on time, every month, significantly boosts your credit score.
• Manage Your Credit Cards Wisely: Try to use no more than 30% of your credit limit. For example, if your limit is £1,000, try not to use more than £300.
• Keep Balances Low: Pay off your credit card balance monthly to avoid interest and improve your credit score.
• Regularly Check Your Credit Reports: Errors are unusual but can happen, so it’s essential to check your reports regularly. If you do find a mistake, ask the agency to correct it.
• Opt for Monthly Payments: If possible, choose monthly payments for bills like your car insurance, as this will help show you can make regular payments.
• Put Bills in Your Name: Getting your name on the gas bill or broadband contract will be a point in your favour if you make your payments regularly each month.
• Take a Long Term View: Remember that improving your credit score is a gradual process, but within six months you should be seeing the results of your efforts.