5 Ways To Improve Your Credit Score In The UK
You've more than likely heard the term credit score at some point in your life. It's commonly presented as a daunting number that you'll have to keep up with throughout adulthood if you want to make major purchases like buying a car, a house, etc. Each individual has a credit score and will have to take steps to increase that score.
To determine the best ways to to obtain loans and more, you'll need to understand how everyday purchases can impact your score long-term. Luckily, DoNotPay can help you improve your credit score with ease.
What Is a Credit Score and Why Is It Important
When you first start learning about credit, you'll find that the world offers many options to 'help you increase your credit score.' While there are plenty of credit cards and secured loans to choose from, availability doesn't always mean it's the best way to go. A credit score is an average measurement of your debt to income ratio, your ability to pay off debt, and your history of meeting payments on time. Lenders will frequently monitor this average score to determine how much money they'd be willing to loan you when you apply for a loan or a line of credit.
In simple terms, a credit score is your risk value and acts as a reference primarily for lenders. In the UK, credit is monitored similar to the US, with three main credit reference agencies (CRA).
- Experian
- Equifax
- TransUnion
Upon request, these companies help validate your risk factor for lenders, landlords, and employers. This helps verify your identity and determine the likelihood you'll default on a payment.
What Should I Look for on My Credit Report to Improve My Credit Score
Checking your credit score should become part of your routine. Not only is it essential to check your score to monitor growth, but checking your credit report can help you determine the best plan of action to continue increasing your score so that you can meet goals that may require borrowing money.
A credit report will tell you what you've spent, where, and how much you have (or should have) paid off. It can help you calculate your credit score if you need a loan or something. Here is what you'll find on a typical credit report.
| Your first and last name | This could also include any variations or misspellings of your name if you've entered them on any credit card applications. |
| Your address | This may also include past addresses where you've received credit reports before. |
| Your employer | If you've provided employment information to any creditors, it will be included in the report. |
| Revolving accounts | These are credit card accounts or lines of credit you can regularly borrow from. |
| Installment loans | If you have a set loan for a car, your college tuition expenses, or a mortgage, this monthly payment information will appear on your credit report. |
| Open and closed accounts | If you have a bad account that was closed seven years ago, this will be deleted from your report. Accounts closed in good standing will remain on your report for at least ten years. |
| Your payment history | This is a history of payments for all accounts except those mentioned above that are deleted from your report. |
| Recent inquiries | These include any applications for loans or credit that you have made in the last year. |
| Collection accounts | If you have any unpaid debts sent to a collection agency, they will appear here. |
| Public records | These include any information on bankruptcy, foreclosures, or other events that may have affected your credit history. |
When looking over your report, be sure to look for things such as
- Fraudulent activity
- Mistakes such as address errors
- Credit utilization
While verifying on-time payments and paid-off loans is important, checking for any activity that appears inaccurate can help increase your score. There are many things that can make your credit score drop, and when this happens, you must take the initiative to resolve these problems or errors by getting collections removed from your report.
How to Improve Your Credit Score in the UK on Your Own
There are numerous ways to give your credit a boost, whether you're just starting to build it or you're working on getting back on track. The reality is that you don't need to go out and apply for ten lines of credit or apply for a major loan. You'll find that small steps typically help you increase your credit over time more than big risks.
Your credit report isn't a temporary guest, so try these tasks to get yourself on track for success when .
- Apply for a secured line of credit.
- Pay double your minimum payment each month or slightly over the minimum payment.
- Register to vote - this allows lenders to validate your identity, where you live, etc.
- Build a history of on-time payments.
- Lengthen the time of an open credit line.
How to Clean Up Your Credit Report With DoNotPay
If you want to clean up your credit report but don't know where to start, DoNotPay has you covered in three easy steps:
- Search Clean Credit Report on DoNotPay.
- Prepare a recent copy of your credit report that you can use as reference.
- Let us guide you through the 4 potential options:
- If you've already paid off your debt, we'll help you file a Goodwill Removal Request to get it removed.
- If you notice any errors in your report (we have a list of common errors you can use!), we'll help you file a credit dispute to the creditor or major credit bureaus.
- If there are no errors, we'll check if you're still eligible to file a debt validation request. If they can't validate your debt, they're required to remove it from your report, and they can't collect it!
- Lastly, if none of the above options work, we'll help you file a pay-to-delete negotiation letter. You can customize the amount you are willing to pay in exchange for getting the item removed.
You can also check out our other credit products, including Credit Limit Increase, Get My Credit Report, Keep Unused Cards Active, and more! **
Want More DoNotPay Guides on Improving Your Credit?
Still not sure how to improve your credit score or want to learn more on things like disputing transactions on your report? DoNotPay has your back. Check out a few of the many credit-related guides we've curated to help you improve your credit report.
- How to remove late payments from your credit report
- Debt validation letter
- Dispute credit report