How to check and improve your credit score

How your credit score works – and how to make it work for you

TL;DR: How do you check and improve your credit score?

You can check your credit score for free through the three main UK credit reference agencies – Experian, Equifax and TransUnion – or via free services like ClearScore or Credit Karma.

To improve it, register on the electoral roll, pay bills on time, keep your credit utilisation below 25%, and avoid closing old accounts. Most changes take around three months to show up in your score.

If you’re thinking about leasing your next car, your credit score is going to be one of the first things a lender looks at.

But knowing where yours stands, and what to do if it needs a boost, isn’t always straightforward. Or obvious.

The good news is that checking your score is easy, and there are some simple, practical steps you can take to improve it – most of which won’t take long at all.

In fact, you can probably improve your credit score in the time it takes the kettle to boil for your next cuppa.

Whether you’re new to the world of credit scores, or you’re an old hat looking for some extra ideas, this guide covers everything you need to know.

What is a credit score?

Think of your credit score as your financial report card.

It’s how lenders assess the risk of lending you money, based on your borrowing history and how reliably you’ve paid everything back. The better your track record, the higher your score – and the lower the risk you’re seen to be.

Your credit report is held by companies known as credit reference agencies (CRAs).

There are three main ones in the UK: Experian, Equifax, and TransUnion. Each one creates and holds its own version of your credit report, and lenders will review these before approving a finance application.

Here’s where things get a little confusing. Each CRA uses a different scoring scale:

• Experian scores out of 999
• Equifax scores out of 700
• TransUnion scores out of 710

So, even with identical information, your score will look different depending on which CRA you’re looking at. What matters more than the number itself is where you sit on their scale.

Broadly speaking, the ranges work like this across all three:

1. Excellent/very good: You’re seen as low risk, lenders are likely to offer you competitive rates
2. Good: You’re in a solid position for most finance applications
3. Fair: You might be accepted, but the terms might not be as favourable
4. Poor/very poor: Applications might be declined or come with higher interest rates

Does your credit score affect car leasing?

Yes, and it’s one of the most important factors in your finance application.

When you apply to lease a car, the funder carries out a credit check to decide whether to approve your application and, if so, on what terms. A stronger credit score generally means a smoother approval process, and access to more competitive deals.

That said, there’s no universal minimum credit score to lease a car.

Each funder makes their own decision based on the full picture of your application – so a good to excellent score gives you the best shot, but it’s not the only thing being considered.

You’ll also need to meet age, driving licence, and residency requirements, and prove that the payments will be affordable for you.

How to check your credit score

You can check your credit score directly through each of the three CRAs – Experian, Equifax and TransUnion – and all three offer a free version of their service as a starting point.

There are also other free services out there that you can use to check your score, like ClearScore, Credit Karma, and TotallyMoney, and you might also find that you can track your score through your bank.

Paid subscriptions typically unlock additional features like daily score monitoring, fraud alerts and dispute support, which are worth considering if you want to stay on top of things longer term.

One in three UK credit reports contain errors, so it’s always worth reviewing yours carefully.

If you spot anything that looks wrong – an incorrect address, an account you don’t recognise, or a search you didn’t authorise – contact the relevant CRA straight away. They can amend their records and add a ‘notice of correction’ to your report explaining the issue.

How to improve your credit score

Register on the electoral roll

This is one of the simplest and quickest things you can do.

Registering to vote at your current address links you to where you live, and your electoral details appear on your credit score as a result.

This small change makes it easier for lenders to confirm your name and address quickly, which can speed up finance applications and get you behind the wheel sooner.

Build your credit history

A credit score predicts your financial reliability based on your past behaviour.

If you have little or no credit history, lenders don’t have much to go on – and your score will be lower to reflect that uncertainty.

This is more common among younger people and those who haven’t been living in the UK for that long. 

The solution is simple, but not always easy: start building your credit history.

You can do this by having a bank account, using a credit card for regular purchases (like fuel or your weekly shop) and paying it off in full each month, and managing household bills well. These are all solid ways to demonstrate that you can borrow responsibly and pay it back.

Pay everything on time

Your payment history is one of the most significant factors in your credit score.

A missed or late payment – whether it’s a credit card, a phone bill, or a Direct Debit – will have a negative impact.

And the effects can linger.

Paying your credit card balance in full each month is ideal. If that’s not always possible, hitting at least the minimum payment by the due date is non-negotiable.

Setting up automated payments is the simplest way to make sure you never miss one.

Keep your credit utilisation low

Credit utilisation is the percentage of your available credit limit that you’re currently using.

If your credit limit is £500 and you’ve borrowed £250, your utilisation is 50%.

The lower this figure, the better it looks to lenders. Ideally, you want to keep it below 25% as much as you can.

It’s worth balancing this carefully though. Taking out multiple credit cards to push your utilisation down might look good on paper, but it can also suggest an over-reliance on borrowing.

And each new account increases your exposure to fraud.

A sensible credit limit based on your actual needs, used responsibly, is a better strategy than artificially inflating it.

Don’t close old credit accounts

Long-standing credit accounts work in your favour.

They show lenders that you’ve been managing credit reliably over time, and keeping them open – even if you rarely use them – demonstrates that you can handle multiple accounts at once.

Closing an old credit card can hurt your score, because it reduces your total available credit and pushes your utilisation up as a result.

How long does it take to improve your credit score?

It depends on the change you’re making.

Some things – like registering on the electoral roll – can have a fairly quick impact. Others, like building up a credit history or recovering from a missed payment, can take longer.

In either case, you’ll typically need to wait around three months after making a change for the updated information to feed through to the CRAs and be reflected in your score.

Patience is the name of the game when it comes to improving your credit score – consistent good habits over time will always outperform short-term fixes.

Can you lease a car with bad credit?

It’s possible, but it does make things more challenging.

A lower credit score means a funder might see you as a higher risk, which can result in a declined application or less competitive terms. There’s no fixed threshold – every funder makes their own assessment – but the closer your score is to excellent, the better your chances of a straightforward approval.

If your credit score isn’t where you’d like it to be, it’s worth taking some time to improve it before applying.

A declined application results in a hard search on your credit report, which can temporarily lower your score further – so it’s better to apply when you’re in the strongest position possible.

You can also speak to one of the Carparison team, who can help guide you through your options based on your situation.

The benefits of a good credit score

A healthy credit score opens more doors than just a leasing application. The knock-on effects include:

• Lower interest rates: Lenders want low-risk borrowers, which can mean better loan and credit card rates for you
• Higher credit limits: The better your score, the more you’re likely going to be able to borrow
• More choice: A stronger profile gives you access to a wider range of deals and providers, whether you’re looking at leasing a car or opening a new credit card account
• A smoother process: Across the board, applications tend to move faster and with less friction when your score is in good shape

Your credit score is one of the clearest reflections of your financial health.

Looking after it won’t just improve your chances of being accepted for a lease – it could save you money on the cost of borrowing too.

And when it comes to getting behind the wheel of your next car?

A healthy credit score puts you firmly in the driving seat.