Your credit history is a record of how you use credit, including the dates on which you applied, whether you were successful in repaying it, and the total amount you presently have available. You probably won’t have much of a credit history if you just turned 18, are new to the UK, or simply haven’t owned a credit account in the past six years.
There are many easy actions you can take to develop your credit profile and increase your chances of acquiring credit, regardless of whether you have no credit history, a bad credit history, or are migrating to the UK from abroad.
It’s crucial to understand that it could take up to six months before you start to reap the rewards of these measures. Some information can take some time to reach us, and actions like establishing a new bank account or getting a credit card can initially lower your credit score before improving it.
Get registered to vote. Even if you live at home or in a shared apartment, it is quick and simple to register to vote. This information is essential to establishing your credit history since lenders need it to verify that your name and address are accurate and current. You can include a brief notification of non-eligibility (not being a UK national, for example) if you wish to be removed from the electoral roll.
Obtain a little amount of credit. This could be a retail card or a contract for a mobile phone. Compared to credit cards, they’re typically easier to get approved for, but you may still use them to show that you can manage your money and make on-time payments on your bills.
Maintain good bill management. Maintaining your utility accounts (such as water, gas, and electricity) will help you establish credit history and demonstrate your responsibility to lenders. Even your rent payments, as long as you make them on time and in full, can raise your credit score. Sign up with CreditLadder to have information about your regular rent payments added to your credit history.