Though just three digits long, your credit score has a huge impact on your life. It can influence how easily you can get a loan or acquire a mortgage, what rate your credit card fees are set at, and which interest rates you get.

In this article, we explore how you can find out what your credit score is and how you can start to improve it if you have a low credit score or no credit history at all. We also look at how you can use Pockit’s credit builder to start building your credit history more quickly.

What is a credit score?

A credit score is a three-digit number you are given based on your credit history… Taking into account factors such as ​​the amount of money you currently owe and whether you typically pay bills on time, this is a report of how well you have repaid previous debts.

A higher credit score indicates a stronger level of trustworthiness to potential lenders and a lower number indicates the opposite.  In the next section, we look at how you can understand what is a good credit score in the UK in more depth.

It’s also important to note that you may have no credit history at all — for example, because you haven’t used traditional credit accounts in the past or because you’re a recent immigrant. You can get more help understanding your credit score here.

How to check your credit score in the UK

Tools such as Experian, ClearScore and MoneySupermarket give you a free way to check your up-to-date credit score. They each pull data from the major Credit Reference Agencies (TransUnion, Equifax, and Experian) which collect and store information related to your credit history.

Why is your credit score important?

When you request a loan, apply for finance for a car, try to take out a credit card, or apply for a mortgage (or even sometimes a rental agreement), lenders will do a background check on your credit history.  This includes checking your credit score, where a greater number is an indication of good financial health.

As well as being granted the above, you might also be offered lower and longer-lasting interest rates.  In the case of insurance, you could also be offered lower premiums.

Bad credit, on the other hand, can result in several issues. If you’re asking yourself any of these questions, a low credit score could be at the bottom of it:

• Why can’t I get a credit card in the UK?
• Why can’t I get a phone contract?
• Why can’t I get a personal loan?
• Why can’t I get an interest-free credit card?
• Why can’t I get car finance?
• Why can’t I get an overdraft?
• Why can’t I get a mortgage?
• Why are my credit payments so high?
• Why are my credit card fees so high?

Tips on how to build credit score in the UK

Building your credit score can take a few months or years. However, there are some tips you can follow to start today. Jump straight to it with 6 quick tips on how to build credit fast or read on to find out more…

Use Pockit’s Fast Track to Credit to get a bank account with no credit check

Looking for a bank account with no credit checks? Pockit’s Fast Track to Credit is the perfect way to start building your credit score, fast… Open your account in 3 minutes and get access to personal credit in 3 months. There are no credit checks required for you to open the account and no hard credit checks, ever.

All you have to do is make monthly payments of £9.99 on time; these will be reported each month to the main UK Credit Reference Agencies. You’ll also get cashback rewards, access to four insurance products, and the ability to borrow up to £500 after 3 months at 0% interest.

Learn more about our credit builder and prepaid cards directly or discover more about how fast track can build your credit score.

Register on the electoral roll

Registering to vote in the UK from your current address can help you verify your identity to lenders. This increases their trust in you and could improve your credit score.  

Apply for credit less often

Don’t apply for credit just to find out whether you are eligible. This will result in lenders doing a deep dive into your credit history known as a “hard search.” Unlike checks you do through the tools we outlined above, too many of these hard searches can negatively impact your credit score.

Check your credit history for mistakes

Occasionally, errors will creep into your credit report; having acquired this data from one of the tools we outlined above, you should point out any mistakes as quickly as possible.

By contacting your bank or lender you can also sometimes add a note to your credit report to explain why you fell behind with payments. This is known as a Notice of Correction and can help build trust with other lenders.

Check who you are financially linked with

Financial associations can occur if you've shared credit with someone else, such as a joint tenancy agreement or shared bills. You can request a Notice of Disassociation to remove these financial links once they no longer apply, but in general, it’s a good idea to keep your finances separate wherever possible. This means avoiding taking out joint bank accounts or mortgages with someone who has a poor credit score.

Make regular payments on time

Payment history is one of the most significant factors affecting your credit score, so ensuring that you pay your bills on time is key. If you have a credit card, for example, pay more than the minimum amount due before it’s due. This will show that you’re capable of managing credit responsibly.

How long does it take to build a credit score in the UK?

Even when you have help with your credit score, it can take a while to build it up. Research typically suggests around 9-12 months. However, depending on your situation, you could get a good credit score in as little as 3 by making regular payments with Pockit Fast Track to Credit. This is because Credit Reference Agencies are continually notified of these payments.  

As well as being a great way to open a bank account with bad credit, Pockit Fast Track is good for those who have no credit history at all — for example, new immigrants in the UK.

FAQs

Can I check my credit score if I don't have credit?

If you have no credit history or credit card, you can still check your credit information. Tools such as Experian, ClearScore and MoneySupermarket will notify you that you don’t currently have a credit score.

Can you pass a credit check with no credit history?

You can sometimes still be approved for credit without a credit history. In these instances, lenders may use alternative methods such as your employment status or rental payment history. You can also use Pockit Fast Track to Credit to build a credit history without taking on debt.

Can you get a credit card if you're bankrupt?

If you’re looking to borrow more than £500, you must disclose your bankruptcy status to the lender; this can make it difficult to acquire credit. Instead, it’s better to start by looking at ways to build credit without a credit card such as Pockit Fast Track to Credit.

How fast can you build your credit after bankruptcies?

Bankruptcy can show on your credit history for up to ten years, but you can limit its impact by improving your credit. How do you build credit when bankrupt? Take a look at Pockit’s Credit Builder.

Can I build credit with a CCJ?

A County Court Judgment (CCJ) shows up on both soft and hard credit checks; this means it can be difficult to be granted opportunities to build credit. The best idea in this instance is to use Pockit’s Fast Track to Credit instead.

How can I clear a County Court Judgement (CCJ)?

To clear a CCJ, you have to make a payment to reconcile the debt. If this is done within a month, the CCJ will be removed from your credit score immediately. If you pay after a month, it will show as “satisfied” or paid instead.

How long does it take for a CCJ to show as satisfied? How much will my credit score go up when CCJ comes off?

On average, a CCJ being removed could result in your credit score going up by 200 points. It typically takes one month for a CCJ to show as satisfied.

Can you restart your credit score?

You can’t completely erase your credit score, but you can improve it over time, even if you have a history of bankruptcy or CCJs. Most negative information will stay on your credit score for seven to ten years and then be removed. Pockit’s Fast Track to Credit gives you an opportunity to improve your credit score without needing to go through a credit check.

What if my credit history isn’t in the UK?

Most UK lenders and bank accounts will require insights into your financial history in the UK to grant credit. This is why it’s important to learn how to build your credit score in the UK specifically. Pockit’s Fast Track to Credit is a great way to do this, allowing recent immigrants to the UK to start building credit more quickly.