You may be able to repair your credit by checking your credit reports, fixing errors and building a better payment record over time.
Start by checking your credit reports. Look for errors and old details. Try to pay bills and credit accounts on time. You should also avoid making many credit applications at once.
There is no quick or sure way to repair a credit history. Some changes may appear quite soon. Other changes may take months or years.
You do not have one set UK credit score. Each credit reference agency uses its own system. Lenders may also use their own checks when they review an application.
A higher score does not mean that you will get credit. However, a clear and correct credit report may help a lender understand your position.
What does repairing your credit mean?
Repairing your credit means checking your credit reports and dealing with any problems you find.
You may need to correct an error. You may also need to deal with missed payments or old account details.
You can then try to build a better payment record. This means paying your bills and credit accounts by the agreed dates.
Credit repair does not mean hiding true facts. It also does not mean paying a firm to remove a valid missed payment, default or court judgment.
Your credit report may show:
- Your current and past addresses.
- Loans, cards and finance plans.
- Your payment record.
- Late or missed payments.
- Defaults.
- County Court judgments, known as CCJs.
- Some formal debt plans.
- Credit searches.
- People you share credit with.
It may help to know how lenders use your credit information. Your credit report is important, but it is only one part of a lending decision.
Is a credit report the same as a credit score?
No. A credit report and a credit score are not the same thing.
Your credit report holds facts about you. It may show your addresses, credit accounts and payment record.
A credit score is a number based on some of those facts. The firm that gives you the score decides how to work it out.
Experian, Equifax and TransUnion use different score ranges. The score shown in one app may not match the score shown in another.
A lender may use details from a credit reference agency. It may also look at your income, bills, debts and application details.
There is no single credit score needed for car finance. No score can promise that an application will be accepted.
How can you improve your credit score?
The steps below may help you build a better credit record.
Not every step will apply to you. No one step can promise a rise in your score.
1. Check all your credit reports
Start by checking the facts held about you.
The three main UK credit reference agencies are:
- Experian.
- Equifax.
- TransUnion.
Your reports may not all show the same details. A lender may not send data to every agency. Each agency may also update its records at a different time.
MoneyHelper explains how to check your credit reports for free. It also gives links to the main services.
Do not look only at the score. Check the full report.
Make sure:
- Your full name is right.
- Your current address is shown.
- Your old addresses are right.
- You know each account listed.
- The balances look right.
- The payment dates are right.
- Closed accounts are shown as closed.
- Default dates are right.
- You know who made each search.
- Old links to other people have been removed.
It is worth taking time to review your credit profile. This may help you find errors, old details or accounts you do not know.
2. Correct errors in your credit report
An error may make your credit record look worse than it is.
Your report may show:
- An account that is not yours.
- A payment marked as late when it was on time.
- The wrong balance.
- An account shown as open after it was closed.
- An old link to another person.
- An address you have never used.
Write down the account name and the detail that looks wrong. Keep any letters, bills or bank records that support your case.
You can report the error to the credit reference agency. You may also need to contact the lender or firm that sent the data.
The Information Commissioner’s Office explains how to challenge wrong credit data.
The firm should look into your claim. It does not have to change a record just because you do not agree with it.
However, the facts held about you should be right and fair.
A true negative record cannot usually be removed just because it harms your score.
3. Check for accounts you do not know
An account you do not know may be an error.
It may also be a sign that someone has used your details without your consent.
Contact the firm named on the report if you do not know the account. You should also tell the credit reference agency.
Do not ignore an address, search or account that you do not know. Acting early may help stop more harm.
MoneyHelper gives advice on identity theft, scams and how to report them.
4. Register to vote at your current address
Credit reference agencies use the electoral roll to check your name and address.
Being on the roll may make it easier to confirm who you are. It may also make your credit report clearer.
You can register to vote through GOV.UK if you have the right to vote.
This does not promise a rise in your score. It may also take time for the new details to show on your reports.
The full electoral roll is not the same as the open roll.
You can choose not to be on the open roll. This does not remove you from the full roll used for approved checks.
5. Keep your personal details up to date
Try to use the same name and address on all your accounts.
Small changes in the way an address is written may not cause a problem. However, old or mixed details may make it harder to match records to you.
Tell your bank, lenders and service firms when your details change.
If you move home, make sure your old and new addresses are both shown in the right way.
Check your reports again after the firms have had time to update them.
6. Pay bills and credit accounts on time
Your payment record is a key part of your credit report.
A late or missed payment may be sent to a credit reference agency. This may affect your score and a future credit check.
You may be able to reduce the risk of a missed payment by:
- Setting up a Direct Debit.
- Adding due dates to a calendar.
- Using bank alerts.
- Checking your balance before the due date.
- Checking that each payment has left your account.
A Direct Debit can help, but you should still check it.
A payment may fail if there is not enough money in the account.
Paying on time may help you build a better record. It will not remove old missed payments at once.
7. Contact providers early if you need help
Contact the firm as soon as you think you may miss a payment.
The firm may be able to tell you what help it offers. The right form of help will depend on your account and your needs.
A new payment plan may still show on your credit report. Late, missed or lower payments may also be recorded.
Do not agree to a payment that leaves you short of money for food, rent, energy or other basic needs.
If you have several debts, StepChange offers free debt advice.
You can also use the MoneyHelper debt advice tool to find free help near you.
Go Car Credit customers who are worried about their agreement can find details of our support during financial difficulty.
8. Avoid many credit applications at once
A credit check may be a soft search or a hard search.
A soft search does not leave a mark that other lenders can see as a full application.
Checking your own credit report is also not a full credit application.
A hard search may be seen by other lenders. Many hard searches in a short time may affect how a lender views your next application.
This does not mean you can never apply again after a refusal.
It may be wise to pause first. Check your reports and think about why the last application did not go ahead.
Knowing the difference between hard and soft credit checks may help you plan your next step.
Go Car Credit starts with a soft credit check. This first check does not leave a full application mark for other lenders to see.
If you choose to go on and the application moves ahead, we may need to carry out more checks. These may include a hard search.
9. Keep your use of credit at a fair level
Credit use is often called credit utilisation.
It means how much card or account credit you use when set against the total amount you can use.
For example, you may have a card with a £1,000 limit. If you owe £300, you are using 30% of that limit.
Using a large share of your credit may affect how some firms view your position.
There is no set level that will promise a better score. Each agency and lender may view the facts in its own way.
Do not ask for more credit just to change this figure.
If you can afford to pay down a balance, this may lower your use of credit. Pay for food, housing, energy and other key needs first.
10. Do not borrow only to build your score
You do not need to pay interest just to build a credit record.
Only borrow when you need to and when the product is right for you.
Make sure you know the full cost. You should also check that the payments fit your budget.
A new account may lead to a hard search. It will also add a new bill to pay.
If you miss payments, your credit record may get worse rather than better.
11. Think before you close an old account
Closing an old account may help in some cases. It may not help in others.
Keeping it open may show a longer credit record. It may also mean that you use a lower share of your total credit.
Closing it may be the right choice if:
- It has a fee.
- You do not need it.
- It makes it hard to control your spending.
- You have too many accounts.
- You are worried about fraud.
If you keep an old account open, check it often.
Look for fees, changes to the terms and payments you do not know.
Keep the card and account details safe. Do not forget about the account just because you do not use it.
12. Review your financial links
A financial link is a link to someone with whom you share a credit account.
This person is also known as a financial associate.
You may have a link if you share:
- A joint bank account.
- A joint loan.
- A home loan.
- Another joint credit plan.
Living with someone does not create a financial link on its own.
Being married does not always create one either. You will often need to share a credit account first.
If the joint account has ended, check whether the person still shows on your reports.
You may be able to ask for the link to be removed. The agency may ask for proof that you no longer share an account.
A joint car finance application links both people to the proposed plan. Each person should know what it means to apply together.
13. Keep useful account records
Keep key records when you close an account or pay off a debt.
You should also keep proof of any change agreed with a firm.
Useful records may include:
- Final bills.
- Letters that show a debt was paid.
- Emails about a payment plan.
- Proof of each payment.
- Letters about an error or dispute.
These records may help if the facts on your credit report are wrong later.
Store them in a safe place. Make sure you can find them if you need them.
Can you improve your credit after missed payments?
Yes. You may be able to build a better payment record after you have missed payments.
The old missed payments may still stay on your report for some time.
Paying on time now does not erase what happened before. However, it may help show how you manage your accounts today.
A lender may look at:
- When the missed payments took place.
- How many payments you missed.
- The type of account.
- Whether the account is now up to date.
- Your current money needs.
Each lender has its own rules.
A lender does not have to ignore a missed payment because it is old or has since been paid.
Can you remove a default from your credit report?
A true default cannot usually be removed just because it affects your score.
You may be able to challenge it if:
- The account is not yours.
- The amount is wrong.
- The date is wrong.
- The same debt is shown twice by mistake.
- A later payment was not added.
If you pay the debt, the account may be marked as paid or satisfied.
This does not usually remove the default itself.
A default will often stay on a credit report for six years from the default date. Paying it will not usually start that six-year period again.
The type of record will affect how long bad credit stays on your credit file.
A lender may still review the default when you apply for car finance after a default. All applications will still be subject to checks.
Can you improve your credit after a CCJ?
A County Court judgment may have a strong effect on your credit record.
What you can do will depend on whether the judgment is right and when you paid it.
A paid judgment may not be removed from the record. It may instead be marked as paid or satisfied.
If you think the judgment is wrong, seek advice before you apply to the court.
Do not pay a credit repair firm that says it can remove a valid judgment.
StepChange offers free help with CCJs and what they mean.
A lender may still review the judgment if you apply for car finance with a CCJ.
Can you improve your credit during or after an IVA?
An Individual Voluntary Arrangement is also known as an IVA.
It is a formal plan used to deal with debt.
An IVA may make it harder to get new credit. There may also be rules about how much you can borrow while it is active.
Do not take out new credit to improve your score without checking your IVA terms.
Speak to your insolvency expert if you do not know what the plan allows.
Finishing an IVA does not mean that all related records will go at once.
Check your credit reports after the IVA ends. Make sure the IVA and the debts in it have been updated.
Raise an error with the firm or credit reference agency if the facts are wrong.
The checks linked to car finance with an IVA may depend on whether the IVA is still active or has ended.
What if you have little or no credit history?
Having little credit history is not the same as having bad credit.
A short credit record is sometimes called a thin credit file.
This may apply if you:
- Have never used credit.
- Have just moved to the UK.
- Live with family and have few bills in your name.
- Have not used credit for a long time.
You may be able to make your report easier to check.
Register to vote if you can. Keep your name and address details up to date. You may also have household bills in your own name where this is right for you.
Do not apply for many credit products just to create a record.
Any new credit must still be right for you and fit your budget.
How long does it take to improve your credit score?
There is no set time.
A clear error may be fixed after the firms have checked it.
Other changes may take more time to show. This is because lenders and credit agencies send and update data at different times.
Changes may include:
- A lower card balance.
- A debt that has been paid.
- A new entry on the electoral roll.
- A new address.
- A default marked as paid.
A better payment record takes time to build.
A few on-time payments will not erase a long record of missed payments.
Defaults, court judgments and formal debt plans may stay on your report for several years.
The answer to how long it takes to improve a credit score will depend on your report and the changes you make.
Should you pay a credit repair company?
Take care with firms that promise to fix your credit score fast.
No firm can promise a higher score.
A firm cannot remove true facts just because those facts are bad for your score.
You can take many useful steps for free. You can:
- Check your reports.
- Report wrong details.
- Update your address.
- Register to vote.
- Contact your lenders.
- Get free debt help.
Take care if a firm:
- Promises a set rise in your score.
- Says it can remove all bad records.
- Asks for a large fee at the start.
- Tells you to give false details.
- Tells you to hide an account or address.
- Pushes you to take out more credit.
- Asks for your bank or credit report password.
You can use the FCA Financial Services Register to check the details of a financial firm.
If debt is the main problem, free debt help may be more useful than a paid credit repair service.
Could a better credit score help with car finance?
A better credit record may help when you apply for car finance.
It does not promise that a lender will accept you.
A lender may look at:
- Your credit record.
- Your income.
- Your usual bills.
- Your current debts.
- The details in your form.
- Whether the payments fit your budget.
Your credit score does not show your whole position.
Go Car Credit is a direct lender that offers bad credit car finance. We look at more than the score shown by a credit reference agency.
Our first check is a soft credit search.
This does not leave a full application mark for other lenders to see.
If you choose to go on and the application moves ahead, we may carry out more checks. These may include a hard credit search.
All applications are subject to status and affordability.
A higher score does not promise approval or a set rate.
If another lender has said no, it may help to check your reports before you apply for car finance after being refused.
Frequently asked questions about repairing credit
Here are clear answers to common questions about repairing your credit.
Can I repair my credit score myself?
Yes. You can check your reports and report any errors yourself.
You can also update your details and manage your accounts without paying a credit repair firm.
True negative records may still stay on your report for the set period.
What is the fastest way to improve a credit score?
There is no single fast method that works for all people.
Fixing a clear error may help once the record is changed.
Building a better payment record will often take more time.
Does checking my own credit report lower my score?
No. Checking your own report is not a full credit application.
It may show as a soft search. This is not the same as a hard search made for a new credit application.
How often should I check my credit reports?
There is no set rule.
You may wish to check before a key credit application. You may also check after a house move or when you think a detail is wrong.
Check at once if you think someone has used your details.
Does registering to vote guarantee a better credit score?
No. Being on the electoral roll does not promise a rise in your score.
It may help a credit reference agency check your name and address.
Can I ask for a missed payment to be removed?
You can report it if the record is wrong.
A firm does not usually have to remove a true missed payment just because it affects your score.
Does paying a default remove it?
No. Paying the debt does not usually remove the default.
The account may be changed to show that it has been paid.
This may give a future lender a clearer view of the account.
Should I close an unused credit card?
It will depend on your needs.
Keeping it open may keep a longer account record.
Closing it may be better if it has a fee, is hard to manage or makes you want to spend.
What is a good credit utilisation level?
There is no set level that promises a good score.
Using a large share of your credit may affect how some agencies and lenders view your position.
Will a better credit score guarantee car finance?
No. A better score does not promise car finance.
A lender may also look at your income, bills, debts and form details.
Can I apply for car finance while I rebuild my credit?
You may still be able to apply. Approval is not promised.
Check that the payments fit your budget. You should also think about any credit applications you have made in recent weeks.
Keep learning about your credit record
Improving your credit record often takes time.
Start by checking that the facts in your reports are right.
Then focus on steps you can keep doing. Pay bills on time where you can. Keep your details up to date. Avoid credit applications that you do not need.
The Go Car Credit credit explained resources cover credit reports, searches and scores. They also explain the facts a lender may use.
A low score is only one view of your past credit use. This is why a bad credit score does not define you.
It does not show your worth as a person. It also does not promise what will happen in the future.
