Credit Score — What It Is and How to Improve Yours

Your credit score is a number (or rating) that indicates to lenders how likely you are to repay borrowed money.

What affects your credit score

  • Payment history — missed or late payments have the biggest negative impact
  • Credit utilisation — using more than 30% of your available credit limit reduces your score
  • Length of credit history — older accounts help
  • Electoral register — being registered to vote significantly helps
  • Hard searches — multiple applications in a short time lower your score

How to check your score

Free services include Experian, Equifax and TransUnion (through ClearScore). Each uses a slightly different model. You are entitled to a free statutory credit report from each agency.

How to improve it

Register to vote, pay all bills on time, reduce outstanding balances, avoid too many applications in a short period, and check for errors on your report.

Frequently Asked Questions

How can I improve my credit score quickly?

Register on the electoral roll immediately. Pay all bills on time. Reduce credit utilisation below 30%. Avoid multiple credit applications in a short period.

How long does it take to build a credit score?

With consistent positive behaviour, most people see meaningful improvement within 3–6 months. Adverse credit typically clears from your file after 6 years.

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