How to improve your credit score

If you need help in improving your credit rating, you should aim to build a history of good financial management. One of the best ways to do this is by always making your payments in time. Lenders will look for missed payments on credit cards, utility and mobile phone bills, all of which can have a knock-on effect on your credit rating.

If a deadline passes you by, make a payment ASAP. If you think you might miss a payment, let your lender know before it actually happens. Often lenders have a short grace period before informing ratings agencies.

Mistakes and overspends can happen, but it's important to try your best to keep below your credit limit. Going over could cost more in charges and can make you look unreliable to lenders, even if you clear the balance by the time payday comes around. Staying within your credit limit and making regular repayments shows lenders you’re on top of your finances.

Check statements or online accounts to get an idea of how close you’re getting, or have a chat with your lender to see what steps you can take if you need help.

Taking cash out with your credit card can look like you have cash flow problems, and could negatively affect your credit rating. Using your debit card for cash withdrawals helps you avoid higher interest rates and surprising charges and fees, as well as keeping your credit rating intact.

Only paying the minimum amount might make it look like you don’t have much to spare. This could put some lenders off letting you borrow more.

Increasing your monthly repayments when you can – even by a small amount – can make a big difference. It could help you pay less interest, wipe out your debt quicker, and help boost your credit rating. Try our Repayment Calculator to see just how much you could save in time and interest by paying more than the minimum each month.

Contact your lender to discuss ways to pay your bill, or discover the different ways you can pay your Barclaycard bill.

That unused credit card gathering dust in your wallet will show up on your report as an available line of credit. But it isn’t necessarily seen by lenders as a positive thing.  

A well-managed credit card with regular payments can actually help improve your credit rating. But watch out, going rogue and missing payments or exceeding your limit could put lenders off giving you credit.

Business and pleasure don’t always mix. Using the same credit card for both can make it look like you're spending more than you actually are. It's important to keep a buffer just in case any unexpected payments come your way.

Some lenders don't like it when customers have unused credit, in case they use it all at once and then struggle to pay it back. Closing old accounts could potentially improve your credit rating.

On the other hand, by closing down a card, you’re reducing the overall amount of credit available to you and then it may seem as if you need to utilise a larger percentage of your credit limit just to get by.

Lenders look at the credit limits available to you and how much you use to judge whether you can cope with new credit. If you have an overall credit limit of £1,000 and you use £250 of it, your credit utilisation is 25%. But if you cancel a card and your limit is reduced to £500, you’ll be using 50% of it already.

Accounts that you've used responsibly for years is a great sign that you know how to look after your money. As a rule, you should aim to keep accounts with a long history of good repayments.

If your memory needs jogging, you can find out if you’ve got any active credit cards or store cards by checking your credit report. Credit Reference Agencies will keep a record of closed accounts for six years before they are removed from your credit report.

Other people may appear on your credit report if they’re registered to vote at your address, or if you share a mortgage or joint loan with them. Lenders may use this information to help them decide whether they give you credit or not. If you’re no longer connected, you may be able to ask for them to be removed from your credit report.

You should always pay off a CCJ as soon as you can.  If you can show that you’ve paid off your debts – and they show as settled on your credit report – you’re less likely to be unsuccessful in your future applications.

If possible, maintain a positive balance in your current account and don’t use the overdraft more often than necessary - this will show potential lenders you’re in control of your finances.

You can pay for a report from a Credit Reference Agency – it’s important to check your credit report regularly to help you spot any potential problems before you make a credit application.

Regularly checking your credit report is also a good way to monitor if you’ve been a victim of identity fraud. Watch out for any incorrect info – if you spot mistakes, get in touch with the agency.

Just remember, using a reference agency to see your credit score only gives a general idea of how credit worthy you are – each lender you apply to will have their own criteria. Find out more about how to check your credit score.

Being registered on the Electoral Roll helps lenders check your address, and makes you appear more settled and stable... especially if you've been at the same address for a while. This can mean that you're more likely to be approved for credit. So if you're not sure, it's worth checking.

It also helps with their identity verification checks. Take care to be consistent in your applications. For example, make sure you write your name exactly the same every time, and if you have more than one mobile number, always use the same one for your application.

If you are thinking of getting a mortgage or joint account with someone, it's worth knowing that your future credit rating will be affected by the other person’s previous financial record too.

Other people may appear on your credit report if they’re registered to vote at your address, or if you share a mortgage or joint loan with them. Lenders may use this information to help them decide whether they give you credit or not.

Your credit rating could be affected by someone you’re not living with any more like ex-housemates or former partners if you're still financially linked. It’s always worth having a look at your credit report to make sure any info on joint financial commitments is up to date (both at your current and previous addresses). If you’re no longer connected, you may be able to ask for them to be removed from your credit report.

You should always pay off a CCJ as soon as you can. If you can show that you’ve paid off your debts – and they show as settled on your credit report – you’re less likely to be unsuccessful in your future applications.

Some lenders can see payday loans as a sign that you might be going through a tricky time with your finances, which could go against you. But your rating shouldn’t be damaged by high interest short term loans as long as you repay it in full and on time.

Making a lot of new credit applications at once can make you appear risky to some lenders and this can negatively impact your credit score. Whenever you make an application for new credit, the lender’s search leaves a footprint on your credit history, so too many applications can imply that you’ve failed to get the credit that you want.

Look for a 'soft check' or 'eligibility checker' before you apply for credit. That way you can find out if you'll be accepted before you apply – without affecting your credit rating or your ability to get credit at a later date. Using our eligibility checker won’t leave a footprint on your credit record.