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Why you need a plan to build your Credit Score

It takes years to build up a credit score, start early so that you have a good score when you need it.

In the UK, a young person often starts with little or no credit history, which makes it harder to get approved for loans, mortgages, or even some phone contracts. Awareness of the importance your credit score is the first step of the plan to build a track record of responsible borrowing and repayment. Here’s a clear step-by-step guide:

This guide is part of a series that supports the over arching personal finance guide created for young people in the UK.

How to Build Up a Credit Score (UK)

  1. Get on the electoral roll

    • Register to vote at your current address, even if you don’t intend to vote. Lenders use this to verify your identity.

  2. Open and use a bank account responsibly

    • Keep your account in good standing. Avoid going overdrawn.

  3. Open a credit-building savings tool (1 Year plan)

    • Open an account

    • You take a a loan with Loqbox, but you don't get the money! Consider the loan as a “locked” interest-free loan.

    • Then you repay the loan by £20 per month from your loqbox account.
    • Memberships: Loqbox Lite(£0/year) or Full(£3/week)
    • Full membership provides additional features to save and boost credit score. Check website.
    • Weekly Loqbox Membership fee. Is paid Via your debit card (Can be made monthly payments into Loqbox Save, £3 per week = £153 for year)
    • Loqbox reports your on-time payments and repayments to credit agencies.
    • Your credit score increases! - WINNER
    • After a year you can get the £240, for "free", if you open up a bank account with one of the Loqbox partner banks, otherwise, a £30 fee applies to transfer funds to a non-partner account.
    • Net effect of signing up is £240 - £153 = £ 87. (or less £30, if you don't use partner bank. then you get £57 assuming full membership )

  4. Check Your Credit Score (UK)

    • Contact the three main Credit Reference Agencies (CRAs) in the UK (See below for more info).

  5. Avoid too many credit applications at once

    • Each application leaves a “hard search” on your file. Too many in a short time suggests financial difficulty.

  6. Start with a phone contract or simple credit

    • A mobile phone contract, store account, or small subscription in your name (paid monthly) helps create a payment history.

  7. Get a starter or “credit builder” credit card 3 months after step 1 and 2.

    • Perform Soft Eligibility Checks for Credit Cards, and pick one with 90% or higher eligibility.
    • Use the credit card for small, regular purchases and pay off the balance in full each month.
    • This shows you can handle credit responsibly and avoids interest charges.
    • Start with one card, use it responsibly, then consider upgrading or applying for another.
    • Card points and interest reductions are nice, but the goal is credit history, not spend.

  8. Keep credit utilisation low

    • If you have a card, try not to use more than 25–30% of your credit limit. High utilisation looks risky.

  9. Pay everything on time

    • Direct debits help avoid missed or late payments. Even one missed bill can harm your score for years (3 to 6 years in the UK).

  10. Think about long-term accounts

    • Keeping the same bank account and phone contract for years as it shows stability, which lenders like.

Check Your Credit Score (UK)

There are three main Credit Reference Agencies (CRAs) in the UK:

  1. Experian

    • Score range: 0–999
    • Free: Sign up for Experian Free Account (basic score and report).
    • Paid: CreditExpert subscription gives more detail.
    • Access: experian.co.uk

  2. Equifax

    • Score range: 0–1,000
    • Free: Check via ClearScore app (gives your Equifax report and score updated monthly).
    • Access: clearscore.com or directly with Equifax.

  3. TransUnion

    • Score range: 0–710
    • Free: Check via Credit Karma UK (previously Noddle).
    • Access: creditkarma.co.uk

💡 Tip: Scores differ between agencies, but lenders care more about the report details (your history, accounts, and behaviour) than the number. That’s why it’s useful to check all three, since not all lenders report to all agencies.

Soft Eligibility Checks for Credit Cards

Many banks, building societies, and comparison websites let you see which credit cards you are likely to be approved for before applying. They run a soft check against your credit file to calculate your eligibility percentage (e.g. 90% chance of approval). This helps you avoid wasting applications on cards you’d be rejected for — protecting your score.

Most major banks (Barclays, NatWest, Capital One, Aqua, etc.) offer online “check your eligibility” tools.

Comparison sites (using soft searches):