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:
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Check your credit report – Identify errors or outdated info (use CreditCheckOnline for free)
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Register on the electoral roll – Verifies your address, boosting credibility
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Pay bills on time – Set up direct debits to avoid missed payments
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Reduce credit utilisation – Aim to use less than 30% of your available credit
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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:
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Free credit report checks (soft search, no impact)
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Personalised improvement tips
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Alerts for significant changes
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UK-focused credit monitoring
Don't risk missing
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Access a comprehensive credit report
that includes detailed data from TransUnion
View your credit score for only £1.95.
You can view it for 1 month, after which it will be £14.95 per month unless cancelled.
See How You Score
See How You Score
An Independent View Of Your Credit Score
Lenders typically use their own systems to calculate your Credit Score based on the information in your Credit Report, often checking with one or more Credit Reference Agencies. Your Credit Check Online Credit Score is derived from all the Credit Report information we gather from TransUnion, helping you understand how you might be assessed when applying for credit.
Understand What is Affecting Your Credit Score
Quickly see how the details in your Credit Report influence your Credit Check Online Credit Score, both positively and negatively. This clear overview helps you identify areas for improvement and better understand the factors that lenders consider when assessing your creditworthiness.
View your credit score for only £1.95.
You can view it for 1 month, after which it will be £14.95 per month unless cancelled.