There are many factors that affect how financially attractive you appear to lenders when trying to get the best credit deals and offers. So, if you want to improve your credit score, learning what factors affect it is a great place to start.

These are the areas which could be having the biggest impact on your credit score:

Your financial account performance history

By ensuring that you make your payments on time and not being continually close to your credit limit, you can start to build up a good credit history. This shows potential credit providers you can borrow money responsibly, and afford to pay it back on time.

County court judgments, bankruptcies and insolvencies

Unfortunately, records of county court judgments (CCJs) and insolvencies stay on your credit file for up to 6 years (and in some cases, even longer!)

Lenders will consider you a higher risk as you’ve been unable to meet your credit commitments in the past. In their mind, if you’ve been unable to repay your debts once, you may be unable to repay them again.

People you’re financially connected to

Whilst people you’re financially connected to won’t have an impact on your credit score, they can have an influence on your ability to obtain credit if their connection to you leads to negative information.

Make sure you regularly check your credit report to ensure all your financial connections are still relevant. If they aren’t you can raise a dispute with the credit reference agency to disassociate from them to avoid their influence on any credit applications you make in the future.

Rest assured, living with someone doesn’t automatically create a financial connection. You’ll need to have a joint loan, mortgage or bank account in order to be financially connected to them.

Being on the Electoral Register

Being on the Electoral Register is an easy way to make lenders aware that you have a stable address history, and can so can be contacted about any money owed. If you’re not already on the Electoral Register, you can be added by going to https://www.gov.uk/register-to-vote and registering there.

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