Credit Building > Where should you start repairing your credit score?

Where should you start repairing your credit score?

Wollit Team2 minute read · Updated 19th September 2024

A good credit score is one of the most important things you need in the UK. It affects not only your ability to get loans and mortgages, but even your job prospects. Here is what you need to do to repair yours.

How does my credit score work?

A credit score is a number that shows how trustworthy you are when it comes to borrowing money. In the UK, three main companies – Experian, Equifax, and TransUnion – create these scores based on your credit history. The higher your score, the better your chances of getting approved for loans and mortgages.

Having a good credit score can make a big difference:

A higher score increases your chances of getting loans approved.
Lenders offer lower interest rates to people with good scores, which can save you money over time.
Some landlords and letting agencies check credit scores when choosing tenants.
And even some employers may look at your credit score, especially for jobs in finance.

What do I need to do to repair my credit score?

Repairing your credit score involves several steps. Here’s what you need to do.

Start by checking your credit report from all three major agencies. You can get your credit reports for free from Experian (they have a 30-day trial), ClearScore, and Credit Karma.
Understand your credit score. Each agency has different scoring systems.
Fix errors on your credit report. Look for errors like: payments made marked as not paid, accounts you don’t recognise, or wrong personal information. Sometimes this can even be a sign of identity fraud. If this is the case, consider freezing your credit report and alert Action Fraud, UK’s anti-fraud police.
Pay your bills on time. Your payment history is very important for your credit score. Make sure to pay all bills—like credit cards, utilities, and loans—on time. Setting up automatic payments can help you stay on track.
Don’t max out your credit cards. In fact, try to keep your credit card balances below 30% of your total limit. For example, if your credit limit is £1,000, aim to keep your balance under £300.
Register to vote. Being on the electoral roll helps verify who you are and where you live, which can improve your score. Make sure you're registered at your current address and keep this information updated every time you move.
Avoid making too many applications at once. Every time you apply for credit, it shows up as a hard check on your report, which can temporarily lower your score. Limit how often you apply for new credit and use eligibility checkers that perform soft searches before applying.

Finally, build a positive credit history. You can do this with a credit card or, if you want to avoid high interest and the risk of more debt, with a safer credit-building app.

One such app is Wollit. Wollit is an app that reports your monthly subscription as loan repayment, helping you build a history of timely repayments without the risk of getting hit with high-interest charges or going over your card limit. It can even report your monthly rent payment to Experian, adding another line in your credit report that shows lenders you're responsible and pay your bills on time.

How long will it take to improve my credit score?

Improving your score takes time; usually several months of consistent effort are needed to see real changes. Factors like payment history and account age play important roles in how quickly improvements happen.

Can I remove negative information from my report?

Negative information usually stays on your report for six years; however, its impact gets smaller over time. If there are valid reasons for missed payments (like losing a job or being sick), you can add a Notice of Correction to explain these situations.

Should I use a credit repair company?

While some companies offer services to help improve your score, many just provide advice that you can follow for free. Be careful of any service that promises quick fixes or guarantees results; these claims are often misleading.