Different lenders have their own standards for rating credit scores.

However, if you have a good score with one of the main credit reporting agencies, it's more than likely you'll have a good credit score with your lender.

But remember: your credit score doesn't guarantee that you'll be approved for credit or offered the lowest interest rates. This is because a lender's decision is not made solely on this score. 

How long will it take to improve my credit score?

In general, credit history is built up slowly over time as you increase the number of on-time payments you make. Therefore, the longer a bill goes unpaid, the more significant the likely impact on your credit score.

Most negative marks will remain on your file for at least six years. After that time, everything is deleted from your file, including missed payments, defaults, bankruptcy, and County Court Judgements (CCJs). However, these are some quick improvements you can make today to begin raising your credit rating.

• Register on the electoral roll: if your name's not on there, you'll find it much harder to get credit. You can register to vote online or by post.

• Check for mistakes on your file: even having just a slightly wrong address can have an impact on your score, so make sure you check all the details and report any incorrect information immediately.

• Pay your bills on time: paying on time proves to lenders that you're capable of managing finances effectively.

• Check if you're linked to another person: having a spouse, friend or family member's credit rating linked to yours through a joint account could affect your rating if they have a poor score.

• Check for fraudulent activity: if something on your credit report is incorrect or doesn't apply to you, i.e. if someone applied for credit in your name without your knowledge, contact the credit reference agency immediately to have your file updated.

• County Court Judgements (CCJs): receiving any court judgements for debt will have a severe impact on your credit score. If you're having problems keeping up with payments, find free debt advice online. In exceptional circumstances, you might be able to apply for a judgement to be "set aside" if there had been a valid defence but didn't submit this to the court for good reasons.

• Build a stable address history: lenders feel more comfortable if they see evidence that you have lived at one address for a considerable period. Be sure to bear this in mind.

• Keep your credit utilisation low: Your credit utilisation is how much of your available credit limit you use. For example, if you have a credit limit of £2,000 and you've used £1,000 of that, your credit utilisation is 50%, so you're using half of your credit limit. Usually, using less of your available credit will be seen positively by lenders and will increase your credit score.

Consider getting a credit-building card.

If you have a poor credit history, you might want to consider a credit-builder credit card. These are cards designed for people with a little credit history or who have a bad credit history. The credit limits are often low and the interest rates high. This reflects the level of trust your credit file gives lenders.

Using these cards and paying off the bills each month can prove you're creditworthy, increase your credit score, and enable you to apply for other cards and loans when your credit rating improves. Be aware, however, that the interest rates charged are much higher than standard credit cards. Otherwise, you might end up in debt that you struggle to get out of, which could further harm your credit rating.

Avoid expensive credit repair companies.

You might see adverts from firms that claim to repair your credit rating. Most advise you on obtaining your credit file and improving your credit rating, but you don't need to pay for that; you can do it yourself. Some might suggest other, less scrupulous steps. For these reasons, you should avoid these firms.

How to report and fix any mistakes on your file

If you do spot any mistakes, challenge them by reporting them to the credit reference agency. They have 28 days to remove the information or tell you why they disagree with you. You can also "disassociate" yourself from someone linked to you, such as an ex-partner or a grown-up son or daughter.

During that time, the 'mistake' will be marked as 'disputed', and lenders cannot rely on it when assessing your credit rating. So it's also best to speak directly with the credit provider you believe is responsible for the incorrect entry.

Credit reference agencies rely on information provided by lenders, and often the lender is in the best position to resolve this.

If there's information on your file that's accurate but doesn't reflect your current situation - for example, you got into debt problems when you lost your job, but you're back in work now - you can add a 'notice of correction' to your credit report.

Updated: June 2021