Credit Scores for People New to the UK

7th Jan 2025

When you move to the UK, it's important to understand that you won't have an established credit report upon arrival as your financial history won’t always follow you from one country to another.  Even if you do have a credit report, it may initially be empty or lacking in detail as the referencing agencies just don’t have enough information about you to form an opinion of whether or not you are a risky borrower or not.  This lack of a credit history can make it challenging to borrow money or obtain credit, as lenders may view you as a high-risk borrower. It can also make things difficult when trying to rent property or even get a job in certain sectors.

Building Your Credit Score in the UK

If you are new to the UK, it might take some time to develop a good credit score. There are however some steps you can take to start building your credit score in the UK to improve the picture.

• Register on the Electoral Roll: If you are allowed to vote in the UK, get onto the electoral roll. This helps confirm your identity and residence, which can boost your credit score. Make sure to keep your details updated if you move.
• Put Bills in Your Name: Set up household bills in your name and pay them via direct debit.
• Use High-Interest Credit Cards Responsibly: At first, you may only be able to get high-interest credit cards. Make small purchases and pay off the balance in full each month to prove to lenders that you are a good risk.
• Open a UK Bank Account: Even if you can only get a basic UK bank account without an overdraft facility, use it to receive your salary, pay bills, and manage finances. You might find it easier to open an account with a bank which also operates in your home country.

Remember that building a credit score is never a quick fix and that is the case whether you have recently arrived in the UK to take up a job, or if you have lived in the UK your whole life. It takes time to establish a financial footprint but you can keep an eye on how your credit score is changing by using one of the apps provided by the credit referencing agencies, or by signing up for an account on their website. Check in with the app or website every month to see how things are changing, and after six months or a year you should see the positive steps you have taken reflected in your numbers.

What Happens to Your Debt When You Move?

While your credit score doesn’t transfer to the UK, your debt can. Try to transparent with your creditors by telling them about your move and providing a forwarding address. This ensures that any legal actions are taken in your home country, unless you owe money to an international bank with UK operations.