Credit Score Basics > Does Trading 212 affect credit score?

Does Trading 212 affect credit score?

Wollit Team1 minute read · Updated 18th September 2024

Using Trading 212 does not directly affect your credit score in the UK. This even applies if you trade on margin, since the margin you place acts as a risk-free collateral for the app. However, you can use your ISA investments to boost your credit score a bit. Here’s how it works.

How does Trading 212 work?

Trading 212 offers two main types of accounts: an ISA for buying stocks and ETFs without commissions, tax-free, and a CFD Account for more advanced trading.

Using either of these two kinds of accounts does not directly affect your credit score because Trading 212 does not report account activity to credit reference agencies like Experian or Equifax.

Does opening an account with Trading 212 affect my credit score?

When you open an account with Trading 212, they might do a soft credit check to confirm your identity. Soft checks do not affect your credit score.

This also applies if you apply for a margin account, which allows you to borrow money against your investments. Despite being a kind of loan, the fact that you have to put down collateral (the margin) means that there is no risk for Trading 212. They won’t report your margin trading or your margin calls to the credit reference agencies, either.

Can using Trading 212 improve my credit score?

It depends. When you apply for credit, most banks and lenders will want to see your bank statements. They might also ask about your savings and investments accounts. If you consistently lose money on bad CFD trades, it might be seen as gambling and raise questions about how reliable you are.

But if you simply invest into your ISA account it can be seen as a very healthy financial habit.

Plus, you can use a tool like Experian Boost to make these ISA regular payments count towards a “boosted” version of your Experian credit score. While not all lenders care about this boosted version, some do. Not to mention Experian Boost is free to use.

At the end of the day, though, what lenders care most about is your credit history.

Luckily, now there are many apps that can help you build and improve credit.

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.