Bad Credit? Here’s How to Rebuild Your Credit Score in the UK

5th May 2025

A poor credit score can feel like a financial roadblock, making it harder to get loans, credit cards, or even a mobile phone contract. But the good news? With the right steps, you can rebuild your credit rating over time. This guide explains practical strategies to improve your UK credit score and regain financial flexibility.

Immediate Actions to Start Rebuilding Credit

Begin with these essential steps:

• Check your credit report – Identify errors or outdated info (use CreditCheckOnline for free)

• Register on the electoral roll – Verifies your address, boosting credibility

• Pay bills on time – Set up direct debits to avoid missed payments

• Reduce credit utilisation – Aim to use less than 30% of your available credit

• Avoid multiple new applications – Space out credit requests by 3-6 months

Credit-Building Products to Consider

These tools help demonstrate responsible borrowing:

✔ Credit-builder credit cards (low limits, high interest – pay in full monthly)
✔ Guarantor loans (if you have a trusted helper with good credit)
✔ Loans for bad credit (higher rates, but reports repayments to agencies)
✔ Report rent payments (via services like CreditLadder)

Understanding What Affects Your Score

Your credit score depends on several factors, all of which can be improved with consistent effort. Payment history (35% of your score) is most critical – just six months of on-time payments can make a noticeable difference. Credit utilisation (30%) matters too; paying down balances helps more than closing accounts. The length of your credit history (15%), types of credit used (10%), and recent searches (10%) complete the picture.

Negative markers like defaults or CCJs lose impact over time. While they stay on file for six years, their effect diminishes after the first two – especially if you’ve since established good habits. Never ignore old debts though; even satisfied defaults show lenders you’ve resolved past issues.

Long-Term Habits for Lasting Improvement

Rebuilding credit isn’t about quick fixes but sustained financial discipline. Keep old accounts open (they lengthen your credit history) and maintain a mix of credit types if possible – but only borrow what you can comfortably repay. Regularly monitor your score to track progress and catch errors early. Consider using a budgeting app to manage spending and avoid future overextension.

If struggling with debt, seek free advice from StepChange or Citizens Advice before taking on more credit. Sometimes, a Debt Relief Order or IVA might be appropriate – though these do further impact your score short-term.

How CreditCheckOnline Helps

At CreditCheckOnline, we give you the tools to rebuild smarter:

• Free credit report checks (soft search, no impact)

• Personalised improvement tips

• Alerts for significant changes

• UK-focused credit monitoring