Your credit score is not a fixed number. It moves based on your behaviour, and most of the things that move it significantly are pretty straightforward. This guide covers what actually matters, what is largely a myth, and what to do if you are trying to get a mortgage with a less-than-perfect file.
The things that move your credit score most are: paying on time, keeping credit utilisation low, registering on the electoral roll, and not making multiple credit applications in a short period. Closing old accounts, earning more money and switching bank do not affect your score at all. Most meaningful improvement takes three to six months of consistent behaviour.
There is a lot of bad advice online about credit scores. Before covering what to do, it helps to understand what the credit reference agencies , Experian, Equifax and TransUnion , actually look at.
| Factor | Impact on score |
|---|---|
| Payment history , paying on time every month | Very high |
| Credit utilisation , how much of your available credit you are using | Very high |
| Electoral roll registration , being registered at your current address | High |
| Length of credit history , how long accounts have been open | Medium |
| Hard credit searches , applications for credit products | Medium (temporary) |
| Adverse credit , defaults, CCJs, missed payments | Very negative |
| Your income or salary | No impact |
| Your savings | No impact |
| Closing old accounts | None (can reduce history length) |
Experian, Equifax and TransUnion each hold their own version of your credit file and calculate their own score. They use different scales and not all lenders report to all three agencies. When you check your score on one platform it may differ significantly from your score on another. Lenders typically check one or two agencies depending on their own processes.
These are listed roughly in order of how quickly they tend to produce results.
If you are not already registered at your current address, do this first. It is the single fastest thing you can do. Lenders use the electoral roll to verify your identity and address. Not being on it can cause applications to fail regardless of everything else on your file. Register at gov.uk/register-to-vote. Changes typically show on your credit file within a month.
Mistakes on credit files are more common than people realise. A debt registered to an old address, an account that was settled but shows as outstanding, a fraudulent account you did not open. Get your file from all three agencies , Experian, Equifax and TransUnion , and go through them. Dispute anything that is wrong directly with the agency. Corrections can happen quickly and occasionally reveal significant errors that were dragging the score down.
Credit utilisation is the percentage of your available credit that you are currently using. Using 80% of a credit card limit looks like financial stress to lenders. Keeping utilisation below 30% across your cards is a commonly cited target, though lower is better. Paying down balances has a direct and relatively quick effect on your score.
This sounds obvious but it is the single biggest long-term driver of a good credit score. Set up direct debits for at least the minimum payment on every credit account so you never miss one by accident. A single missed payment can stay on your file for six years and will be visible to every lender you apply to in that time.
Every full credit application triggers a hard search on your file. A cluster of hard searches in a short period looks like you are struggling financially and can temporarily reduce your score. If you are planning a mortgage application, avoid applying for credit cards, car finance or other loans in the six months beforehand.
The length of your credit history is a factor in your score. Closing an old credit card account you no longer use can actually reduce your score by shortening your history and reducing your available credit (which increases utilisation). Unless there is a cost to keeping it open, leave it alone.
Quicker than most people think for the basics. Slower than most people want for the serious stuff.
| Action | Typical timeframe to see improvement |
|---|---|
| Registering on the electoral roll | 2 to 4 weeks |
| Correcting an error on your file | 2 to 8 weeks |
| Reducing credit card balances | 1 to 3 months |
| Consistent on-time payments | 3 to 6 months |
| Building credit history from scratch | 6 to 12 months |
| Recovering from a default or CCJ | 2 to 6 years (stays on file 6 years) |
The key thing to understand about defaults and CCJs is that while they stay on your file for six years, their practical impact on a mortgage application reduces over time. Many lenders are willing to consider applications with defaults that are two or three years old, particularly if they are satisfied and your behaviour since has been clean.
A mortgage lender does not just look at your score number. They look at your whole credit file and make their own assessment.
The score you see on Experian or Credit Karma is calculated by the credit reference agency. A lender does not use that number directly. They pull your file, look at the data, and apply their own criteria. Two lenders can look at the same file and reach completely different conclusions because they have different risk appetites and different products.
A lender who declines your application does not close the door everywhere. Different lenders have different criteria, and specialist lenders exist specifically for borrowers with adverse credit.
If you have adverse credit on your file , missed payments, defaults, a CCJ, or a debt management plan , your options with high street lenders narrow significantly. But specialist lenders do consider these cases, and the terms improve as the adverse credit ages and as your behaviour since improves.
Applying to a lender who is unlikely to accept your application wastes time and leaves a hard search on your file. A whole-of-market broker can check your file, identify which lenders are realistic for your circumstances, and submit once to the most appropriate one. That protects your file and gives the application the best possible start.
Call 01422 354011 or use the form below. Woodhall Mortgages can review your circumstances and identify lenders most likely to accept your application, including specialist lenders for adverse credit cases.
Get Mortgage AdviceWoodhall Mortgages can review your credit circumstances and identify the lenders most likely to approve your application before anything is submitted. As a whole-of-market broker we consider lenders across the full market, including specialists for adverse credit cases that high street banks would decline.
Initial discussion free. A broker fee of £299 is payable if you choose to proceed following a formal mortgage offer. This fee is non-refundable once charged. We may also receive commission from the lender. Your home may be repossessed if you do not keep up repayments on your mortgage.
Get Mortgage AdviceWoodhall Mortgages is authorised and regulated by the Financial Conduct Authority (FRN 762513). As a whole-of-market mortgage broker, we consider mortgages from across the market, subject to lender criteria and product availability. This article is for general information only and does not constitute regulated mortgage or financial advice. Credit scoring criteria vary between lenders and credit reference agencies. Your home may be repossessed if you do not keep up repayments on your mortgage.
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