How to fix a bad credit score

Learning how to fix bad credit takes patience, persistence, and a clear step by step plan to work through. There are a few immediate actions you can take, but most of the work in learning how to improve your credit score comes from careful borrowing and steady, on time repayment behaviour over time.

It helps to be realistic from the start. You cannot erase bad credit overnight, and anyone promising to do so for a fee is best avoided. The good news is that credit history is not fixed. With the right habits, you can repair it and give yourself more choice the next time you need to borrow.

Below, we explain how to improve your credit score in the UK and how to fix a bad credit score, from what drags your rating down to the practical steps that rebuild it.

Why improving your credit score matters

Your credit score is a shorthand for how reliably you have handled credit in the past. The stronger it is, the more a lender trusts you, and that shows up in real ways.

A good credit rating can help you borrow the amount you need, qualify for more products such as loans, credit cards and mortgages, and secure lower interest rates so borrowing costs less. It can also help when renting a home, and some insurers and employers look at credit information too.

A poor score works the other way. You might be offered a much higher interest rate, given a lower limit, or refused outright. The same loan advertised at a low headline rate could cost far more once a weaker credit profile is taken into account, so the effort you put in now pays off later.

Step 1: Understand the negative parts of your credit history

Your credit history is used to decide whether you can borrow money in the future. How good or bad it is affects the products you are likely to be approved for, how much you can borrow, and the interest rates on offer.

The stronger your credit history, the more choice you have and the better deals you can secure when you need them. So the first step is to see clearly where you stand.

Start by checking your credit rating to understand, broadly, how lenders may view you. Then get a copy of your full credit report to dig into your history and see exactly what is counting against you, and how badly.

You can get this from a free service such as ClearScore. The UK has three main credit reference agencies that compile this information: Experian, Equifax, and TransUnion. Checking is free, and you are entitled to a free statutory report from each, so it is worth reviewing more than one well before any application.

Both free and paid services give you a rundown of your credit history plus a credit score. The score reflects your financial behaviour and gives you a useful impression of how lenders are likely to view an application. The most recent activity on your file tends to carry the most weight, because lenders care most about your current situation.

What is a good credit rating needed for?

Your credit history is checked when you apply for many financial products, including but not limited to:

• A mortgage
• Car finance
• A mobile phone contract
• Short term loans
• Buy now, pay later deals
• Credit cards and store cards
• Personal loans
• Rental agreements
• Insurance
• Some employers
• Utility services, such as your gas and electricity provider

When you apply, the lender runs a credit check by searching your credit report. They are looking for signs you may not pay back what you borrow, such as defaults on other accounts, late or missed payments, and any other evidence that money has been mismanaged in the past.

If you have a good credit rating, your report will be clear of these markers, or any that exist will be old or very infrequent.

What counts as a good credit rating?

The score you see depends on the Credit Reference Agency you use. Each agency uses a different scale, and each lender applies its own system when deciding whether to approve you. Treat your score as a helpful impression of how lenders may view you, not an absolute truth.

Here is roughly what a good to excellent score looks like with each of the main agencies in 2026:

• Experian now uses a 0 to 1250 scale. A good score is around 861 to 1000, and an excellent score is 1121 to 1250.
• Equifax uses a 0 to 1000 scale. A good score is around 531 to 670, with 811 to 1000 rated excellent.
• TransUnion uses a 0 to 710 scale. A good score sits around 604 to 627, with 628 to 710 rated excellent.

Remember, the exact number matters less than the fundamentals. Resolving negative markers and making sure credit is paid back on time and in full is what improves your credit history as a whole. For more detail, see our guide on what is a bad credit score.

Step 2: How to improve your credit score, step by step

These are not quick fixes. Repairing credit is about showing good borrowing behaviour over time, so be patient and persistent even when progress feels slow. Acting now maximises your chances of being accepted for bigger commitments later, like a mortgage. Here is how to fix bad credit and build a good history over time.

• Pay existing credit on time. Showing you can repay what you owe on time is one of the biggest things lenders look for, so make sure every outstanding agreement is paid on time and in full. Setting up Direct Debits helps you never miss a date.
• Register on the electoral roll. Whether you vote is your choice, but registering makes it easier for lenders to verify your address and can improve your chances of being accepted. Councils share this data monthly, so it can start helping within about eight weeks. You can register to vote here.
• Keep your credit utilisation low. Utilisation is how much of your available credit you are using. If you have a £2,000 limit and owe £1,000, that is 50 percent. Lenders tend to view lower usage positively, so aim to stay under about 30 percent of your limit where you can.
• Check for mistakes on your report. Comb through it carefully. Are all accounts shown accurately? If you have recently paid off and closed an account, is that up to date? Check that loan amounts are correct and that the name and address details on each account match. Lenders do pick up on discrepancies, and even a mistyped address can be enough to cause a problem.
• Look for fraudulent activity. As you review your report, make sure you recognise every account. Anything you do not recognise could be a fraudulent application taken out in your name. If you spot something, contact the lender straight away and raise a report with Action Fraud. If you have been a victim of fraud, a Cifas protective registration can add an extra layer of checks when credit is applied for in your name.
• Check who you are financially linked to. Taking out credit jointly, such as a mortgage or a joint bank account, links you to that person financially. If their credit rating is poor, it can affect you too. When a joint account is closed, ask for a notice of disassociation so your report is no longer linked to theirs.
• Pay off larger debts first. Focus on the biggest and most expensive balances, as these have the greatest impact on your rating.
• Avoid moving home often. Moving is not always your choice, but settling in one place where you can helps. Credit Reference Agencies keep six years of address history to give lenders an overview of your situation.
• Check for defaults or CCJs. In the UK, accounts in default or a County Court Judgment registered to recover what you owe will appear on your report and stay there for six years from the day they were issued. If you have since settled the debt, your lender may remove the marker as a gesture of goodwill. Active markers will not be removed until the six years pass or the debt is repaid, whichever is sooner. If you are struggling with debt, seek free and impartial advice from a not for profit service such as Citizens Advice or National Debtline.
• Add a notice of correction if your circumstances changed. This is a 200 word statement explaining the reason behind something on your report, for example losing your job and falling behind on bills, or being unwell or in hospital. It does not affect your score and does not guarantee acceptance, but it is shared with lenders for their consideration. Bear in mind it can slow applications down, as lenders have to read it manually.

How do I report a mistake on my credit report?

If you spot anything that should not be there, raise it. A mistake may look small but can have a surprising impact on your ability to get credit when you need it.

First, contact the company that placed the incorrect record and explain the problem. You can also raise it with the Credit Reference Agency. If you do, they will mark the record as disputed while they investigate, and lenders should not rely on it during that time. The process should take no longer than 28 days.

Before raising anything, check carefully and do some research first. Some lenders record accounts under a parent company name, or you may have forgotten an old account. If you dispute something that is not actually a mistake, it will not be removed. If the agency and lender refuse to correct something you believe is wrong, you can escalate to the Information Commissioner’s Office.

How to improve your credit score without a credit card

You do not need a credit card to rebuild your rating. Plenty of the most effective steps cost nothing and rely on good habits rather than borrowing.

• Register on the electoral roll at your current address.
• Pay every bill, subscription and existing agreement on time and in full, using Direct Debits where you can.
• Manage any current account overdraft carefully and try to reduce it.
• Keep older, well managed accounts open, as a longer history can help.
• Add your rent to your credit file through a rent reporting scheme. Some charge a fee, but options such as CreditLadder and Canopy have a free version.
• Consider an optional Open Banking boost scheme, which can count things like council tax, subscriptions and payments into savings towards your score.
• Correct any errors and remove outdated financial associations.

Done consistently, these habits are a reliable way to improve your credit score without a credit card ever entering the picture.

How to improve your credit score with a credit card

Used responsibly, a credit card can be a useful tool for how to improve your credit score, because it shows lenders you can manage credit and repay it reliably.

• Consider a credit card with a low limit from a regulated provider if your history is thin or poor. Steer clear of cards marketed as credit building that carry very high interest or fees, as they can do more harm than good.
• Keep your balance well below your limit. Staying under around 30 percent of your available credit is best.
• Pay the balance in full each month to avoid interest and demonstrate control.
• Use the card for small, regular purchases you would make anyway.
• Before applying, use an eligibility checker that runs a soft search. Several applications in a short space of time can lower your score and make lenders wary.

The aim is to build a track record of borrowing a little and repaying it in full, not to run up a balance you cannot clear.

How long does it take to improve a credit score?

If you are wondering how long it takes to improve a credit score, the honest answer is that it depends on what is holding your score back. Registering on the electoral roll can start to help within about eight weeks, and correcting an error can show up quickly. Rebuilding after missed payments takes longer, usually months of steady, on time payments.

Some markers stick around. Defaults and CCJs stay on your report for six years from the date they were issued, so patience and consistency matter. There is no shortcut, and no legitimate way to remove accurate information early.

If you want to understand how long negative markers linger, our guide on how long bad credit lasts goes into more detail.

Can you fix bad credit for free?

Yes. Most of the steps that genuinely work are free. You can check your score and report at no cost, register on the electoral roll for free, dispute errors for free, and build better habits around paying on time. If you ever want to see your raw file, you are entitled to a free statutory credit report from each agency.

Be cautious of firms that advertise to repair your credit for a fee. Most only tell you how to see your report and improve it, which you can do yourself for free. Some claim they can remove accurate information or do things that are not legally possible, so it is best to avoid them. Learning how to fix bad credit for free is mostly about time, consistency and knowing where to look. The government backed MoneyHelper service has free, impartial guidance too.

Keeping your credit score healthy

Once your rating is heading in the right direction, the goal is to protect it. The same habits that repair credit also keep it strong.

• Keep paying everything on time. A long run of on time payments is the single best signal you can send.
• Keep your credit utilisation low, ideally under 30 percent.
• Keep older accounts open where it makes sense, so your history stays long.
• Keep your details up to date across your accounts and the electoral roll.
• Use soft search eligibility checks before you apply for anything, so you only make applications that are likely to succeed.

A brighter way to borrow while you rebuild

Improving your rating takes time, and life does not always wait. If you need to borrow while you rebuild, it helps to work with a broker that is straightforward about how it works and puts you first.

Sunny is a credit broker, not a lender. We search a panel of FCA authorised lenders to find a suitable match, and we never charge you a fee for it. Checking your options uses a soft search, so it will not affect your credit score, and there is no obligation to accept any offer. It is a fair, clear and quick way to see where you stand. If your credit history is less than perfect, you can explore bad credit loans to see the options available to borrowers across the UK.

Borrowing responsibly and repaying on time is itself one of the best ways to rebuild your credit history over the long term.

Warning: Late repayment can cause you serious money problems. For help, go to moneyhelper.org.uk