Credit Scores - What They Are & How To Improve Yours

Updated: May 4, 2020

Credit Score - This is a rating that is used by creditors such as banks/financial lenders to determine whether or not you qualify for loans, credit etc and how much.

This score determines how reliable of a borrower you are and how likely you are of repaying any money borrowed. Each credit reference agency has its own criteria which therefore means they'll have their own 'score'. There is no way to know how each agency scores and what's of importance to each. It can get confusing if you are trying to monitor your credit score across multiple different platforms so choose one best suited to you and stick to that one.

Three Credit Reference Agencies to Check Your Score:

Experian, TransUnion, Equifax

If you're looking to improve your credit score, here are some of the top ways:


Sounds silly but consistent late payment on your bills can really harm your credit score. If your phone bill £20 higher this month than it was last, fight the urge to not pay and just pay it. Any missed payments on direct debits can have a negative effect on your credit score. Your best way is to pay it now and then dispute it late with your network provider.


Using a credit card for purchases and making regular repayments can really benefit your score. A smart way to use credit cards is to use them for big purchases that you ALREADY have the money for and repay when your next statement comes. Credit cards offer an extra layer of buyer protection, read more about it here.


We’ve all made mistakes and overspent where we shouldn’t have but make an active effort to crunch those debts. Even on part time wages, work out how much you can put aside every month to tackle your debts and make regular payments to them.


If you’ve worked out that you’re setting aside £100 a month to pay your debts, pay £50 at the beginning and the remainder 14 days later. Even though you’re paying the same amount, the splitting up of these payments give the illusion that you’re more reliable at making repayments and reflect positively on your credit score.


For those of you who may want to build your credit but prefer not to get a credit card, you can use the credit builder LOQBOX. You choose to make monthly payments between £20 - £300 per month over 12 months. This is reflected as a 'loan' on your credit file. You make payments each month via direct debit which is reflected on your credit file. At the end of the 12 months, you should see an increase in your credit score plus you'll get all of the money you saved over the year back.

Sign up here:

These are some of the best ways to increase your credit score. Any changes you make today will take between 3-6 months to make visible change to your score.

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