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A Credit Score is a tool used by lenders to determine whether a person can qualify for a financial product like a loan, credit card, mortgage or insurance.

The credit report and scores are compiled by Credit Reference Agencies and in the UK there are 3 main bodies - Experian, Equifax and TransUnion.

The credit history and credit score represent customer borrowing and repayment behaviour and allows lenders to assess the risk involved of lending money based on this score. Customers with a good/excellent credit score are more likely to be offered financial products with a lower rate of interest than customers with a poor credit score.


What makes up your credit score?




Payment History


Have previous lines of credit been repaid in a timely and responsible fashion, this can include loans, credit cards, mortgages and household utility direct debits

Amount owed


Using lots of available credit lines may show that the borrower has over extended and is a high risk to the borrower

Length of Credit History


Consideration is taken regarding the length of credit history

Types of credit


Consideration is taken into the types of credit a customer has had before and how they have behaved with that credit

New credit


Applying for several lines of credit in a short space of time can highlight a greater risk, it is better to do a pre check of eligibility before applying


How can I improve my credit score?


  • Check your credit history for accuracy, regular checking can avoid mistakes and increase your credit rating
  • Register for the electoral roll, this will help to increase your credit score and be approved for credit
  • Space out applications for different lines of credit. Several applications in a short space of time can flag up as a risk
  • Disassociate from any ex-financial partners by informing one of your chosen credit reference agencies and close any unused lines of credit including store cards, credit cards and mobile contracts
  • Try to pay more than the minimum requested payment on credit cards each month. This will show commitment to paying off the balance



  • Don’t pay for a credit repair company, they can only do as much as you can to improve your credit score and history
  • Make late payments, a single missed payment can have a detrimental affect on your credit score for several years.
  • Where possible try to avoid drawing cash from a credit card, its expensive as the interest rate is higher and it also could be viewed as a sign of poor money management.
  • Bury your head in the sand and hope your credit score and history will improve itself. Use a non-profit debt advisory agency


At EnterprisingYou we can work with individuals who are self-employed or working in the GIG economy to help and guidance on improving your credit score and history with our dedicated Finance Specialist.

If you would like to speak to one of our Business Coaches for a diagnostic and eligibility check onto the programme please contact 0161 667 6900 or email
More information on the EnterprisingYou programme of support can be found at About Us.

About the author

Shahin Chowdhury

Shahin Chowdhury

Shahin Chowdhury, Finance Specialist at the Growth Company

Shahin has seven years of experience in social enterprise in an advisory role on money and housing issues. Shahin has many years of experience in welfare rights, money and debt advice. He has been a credited member of the Institute of Money Advisers (IMA). Over the years he has worked for social housing to support tenants to overcome financial difficulties. He is determined to help people in financial difficulties and works to maximise their income through money advice.