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benefits of using a credit card sensibly in the UK

4 Benefits of Using Your Credit Card Sensibly

Written by Alex Swindells on . Posted in Credit Score, Debt help.

Updated for 2026

Credit cards are a fixture of everyday life in the UK. Millions of people use them for everything from the weekly food shop to booking holidays and replacing household appliances. But beyond convenience, there are genuine benefits of using your credit card sensibly that many people overlook.

When managed properly, a credit card can work in your favour, helping you build financial stability and access better deals down the line. Here are four key benefits worth knowing about.

1. Build your credit rating with responsible use

Your credit rating plays a major role in your financial life. Lenders use it to decide whether to approve you for borrowing, and at what interest rate. A higher score means better access to mortgages, car finance, and even mobile phone contracts on favourable terms.

Credit reference agencies such as Experian, Equifax, and TransUnion each use their own scoring systems, but the principle is the same. Your credit card account and payment history form a significant chunk of your credit report. By using your card regularly and paying it off on time each month, you demonstrate to lenders that you can manage credit responsibly.

According to MoneyHelper, keeping your credit utilisation low (ideally under 30% of your limit) and never missing a payment are two of the simplest ways to strengthen your score over time.

There are also other ways to improve your credit score, and together they can make a real difference when you need to borrow for something significant.

2. Section 75 protection on purchases

One of the most valuable, and least understood, benefits of using your credit card sensibly is the legal protection it offers under Section 75 of the Consumer Credit Act 1974.

When you pay for goods or services costing between £100 and £30,000 using your credit card, your card provider is jointly liable with the retailer. This means if the company goes bust, the item never arrives, or what you receive is significantly different from what was advertised, you can claim your money back from your credit card provider.

This protection is particularly useful for:

  • Booking flights and holidays
  • Purchasing electronics or appliances online
  • Buying furniture or items from smaller retailers
  • Any situation where there is a risk the seller might not deliver

You do not need to have paid the full amount on your credit card for Section 75 to apply. Even paying a deposit on your card can trigger the protection for the full value of the purchase. Debit cards do not offer this same level of cover.

3. Earn rewards and cashback

Many UK credit card providers offer reward schemes that give you something back for spending you would do anyway. The exact rewards vary by provider, but common options include:

  • Cashback on everyday purchases like groceries and fuel
  • Reward points that can be redeemed for vouchers, travel, or dining
  • Air miles for frequent travellers
  • Discounts or offers with partner retailers

If you pay off your balance in full each month, reward credit cards can genuinely save you money. The key is to treat your credit card as a payment method for things you were already going to buy, not as a reason to spend more.

Some cashback cards require you to log into your account and activate offers before you can earn rewards, so it is worth checking the terms when you sign up.

4. Increase your spending power for emergencies

Life does not always go to plan. Boilers break down, cars need unexpected repairs, and appliances give up at the worst possible time. When your savings cannot stretch to cover an urgent expense, a credit card provides a safety net.

By using your credit card responsibly over time, your provider may increase your credit limit, giving you more flexibility when you need it most. This does not mean spending beyond your means. It means having access to funds for genuine emergencies, with the ability to spread the cost over manageable repayments.

Of course, any credit borrowed must be repaid. If you only make minimum payments, interest charges can mount quickly. The StepChange website has useful guidance on managing credit card repayments and avoiding debt spirals.

What if credit card debt becomes a problem?

In 2026, UK household debt continues to be a concern. According to The Money Charity, average credit card debt per household remains above £2,000, and with the cost of living still putting pressure on budgets, many people are finding it harder to keep on top of repayments.

If your credit card debt is becoming unmanageable, it is important to act sooner rather than later. Ignoring the problem rarely makes it go away, and there are options available to help you regain control.

Swift Debt Help offers general information on dealing with unsecured debts including credit cards. Whether you need guidance on budgeting, understanding your options, or simply want to talk through your situation, support is available.

You might also find it helpful to read our guide on practical tips for dealing with debt in 2026 or learn about the differences between good and bad debt.

Disclaimer: This article is for general information only and does not constitute financial advice. If you are struggling with debt, we recommend speaking to a qualified debt adviser.

remortgaging your home

How to Improve Your Credit Score Before a Remortgage

Written by Alex Swindells on . Posted in Credit Score, Mortgage.

Updated for 2026

If you are thinking about remortgaging your property, your credit score should be one of the first things you look at. A stronger score opens the door to better rates, lower monthly payments, and a wider choice of lenders willing to approve your application.

Your credit score is a number based on the information held in your credit report. Lenders, creditors, the Electoral Roll, and even your local council all feed data into that report, painting a picture of how you have managed money over the years.

The score itself depends on which credit reference agency you check with. Experian scores out of 999, while TransUnion caps at 710 and Equifax uses a scale up to 1,000. Each agency weighs your data slightly differently, so do not panic if your numbers vary from one to the next.

What Does Remortgaging Actually Mean?

Remortgaging is the process of replacing your current mortgage with a new one, either with the same lender or a different one. Some homeowners do this to lock in a better interest rate once their fixed deal ends. Others use it to release equity from their property, freeing up cash to clear outstanding debts or fund home improvements.

The equity you release is not taxed, and a well-structured remortgage can reduce your monthly outgoings. That said, it is not always the right move. If your credit score is low, you may be offered higher rates that cancel out any savings, or you may struggle to get approved at all.

What If You Cannot Remortgage?

If remortgaging is not an option, there are formal debt solutions worth exploring. An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors. You make a single affordable monthly payment based on what you can genuinely afford after covering essentials like rent, bills, and food. After a set period (usually five or six years), any remaining qualifying debt is written off.

For smaller debts, a Debt Relief Order (DRO) might suit you better. To qualify, your total debt must be under £50,000, your monthly surplus must be £75 or less, your assets must not exceed £2,000 (excluding a vehicle worth up to £4,000), and you must not be a homeowner.

If you have been through an IVA or any other debt solution, you may wonder whether a mortgage is still possible. The answer is yes, although timing and preparation matter. Our guide on getting a mortgage after an IVA covers the steps in detail.

Why Has Your Credit Score Dropped?

Credit scores rise and fall for all sorts of reasons. Understanding what causes a decreased credit score can help you avoid common pitfalls. Here are some of the most frequent triggers:

  • Missing a payment or making one late
  • A default, CCJ, or other derogatory mark appearing on your report
  • Using too much of your available credit (high utilisation)
  • Having your credit limit reduced by a lender
  • Closing an old, well-managed account
  • Applying for several new credit products in a short space of time
  • Errors or outdated information sitting on your report unchallenged

Seven Practical Ways to Boost Your Credit Score Before Remortgaging

1. Pay Every Bill on Time

woman paying her bills on time

Payment history is the single biggest factor in your credit score. Even one missed payment can leave a mark that stays on your report for six years. Set up direct debits for every regular bill, from your mobile phone contract to your council tax, so nothing slips through the cracks.

2. Keep Credit Utilisation Below 30%

Credit utilisation is the percentage of your available credit that you are currently using. If you have a credit card with a £5,000 limit and a £4,000 balance, that is 80% utilisation, which looks risky to lenders. Aim to keep it below 30%, and ideally below 25%, in the months leading up to your remortgage application.

3. Avoid Hard Credit Searches

Every time you formally apply for credit, the lender runs a hard search on your file. Too many in a short window makes it look like you are desperate for money. Before remortgaging, avoid taking out new credit cards, loans, or phone contracts. Where possible, ask companies to run a soft search instead, as these are only visible to you and will not affect your score.

4. Settle Outstanding Debts Where You Can

Multiple outstanding balances drag your score down. If you can clear any smaller debts before applying, do so. Focus on the accounts with the highest interest rates first. If full repayment is not realistic, even reducing balances shows lenders you are taking control. Our guide to dealing with debt has more practical advice on this.

5. Check Your Credit Report for Errors

Mistakes on credit reports are more common than you might think. An old address that was never updated, a debt marked as outstanding when it was paid off years ago, or even someone else’s account showing on your file by mistake. Check your report with all three main agencies (Experian, Equifax, and TransUnion) and dispute anything that looks wrong. You can do this for free through services like CheckMyFile or directly with each agency.

6. Register on the Electoral Roll

person posting a vote

This is one of the quickest wins available. Being on the electoral roll confirms your name and address, making it easier for lenders to verify your identity. If you are not registered, you can sign up on the GOV.UK website in about five minutes. Some people see a noticeable score increase within weeks of registering.

7. Space Out Your Credit Applications

If you do need to apply for credit before remortgaging, leave at least three to six months between each application. Clustering applications together signals financial stress to lenders and can knock your score each time. Plan ahead and only apply for products you genuinely need.

How Long Does It Take to Improve a Credit Score?

There is no overnight fix. Small changes like registering to vote or correcting an error can show results within a month or two. Bigger improvements, such as reducing your credit utilisation or building a consistent payment history, typically take three to six months to make a meaningful difference.

If you are planning a remortgage, start working on your credit score at least six months before you intend to apply. That gives you enough time to make real progress without rushing.

Struggling With Debt? You Still Have Options

If debt is the reason your credit score is suffering, tackling the root cause is just as important as chasing a higher number. Solutions like an IVA, a debt consolidation loan, or a DRO can give you a structured path out of debt, and once you complete them, you can start rebuilding your score from a clean slate.

If you are not sure which route is right for you, read our breakdown of how to improve your credit score after an IVA, or explore the different remortgage options available through Swift Debt Help.

Disclaimer: This article is for general information only and does not constitute financial advice. If you are struggling with debt, we recommend speaking to a qualified debt adviser. Swift Debt Help can connect you with FCA-authorised professionals who will assess your situation and recommend the most appropriate solution for your circumstances.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

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Family Keeping Records of Expenses

What Are The Differences Between Good And Bad Debt?

Written by Alex Swindells on . Posted in Credit Score, Debt help.

Updated for 2026

Understanding the differences between good and bad debt is one of the most important steps you can take towards better financial health. Not all borrowing works against you. Some forms of debt, when managed carefully, can strengthen your financial position, while others can drag you into a cycle of repayments that becomes difficult to escape.

In this guide, we break down what separates good debt from bad debt, give you real examples of each, and explain what options are available if bad debt has become unmanageable.

What Is Good Debt?

Good debt is borrowing that helps you build long-term value or improve your financial standing. The key feature of good debt is that it works in your favour over time, whether by increasing your net worth, boosting your earning potential, or helping you improve your credit score.

When lenders see that you can manage debt responsibly, it opens up access to better interest rates and more favourable borrowing terms in the future.

Examples of Good Debt

Mortgages: Taking out a mortgage to buy a home is one of the most common forms of good debt. Property tends to appreciate in value over time, so you are building equity with each repayment. A mortgage is a type of secured loan, meaning the property acts as collateral. If your credit score improves during the mortgage term, you may be able to remortgage at a lower rate.

Student loans: Borrowing to fund higher education is generally considered good debt because it increases your earning potential. In England and Wales, student loan repayments only begin once your income exceeds the repayment threshold set by the Student Loans Company, currently £25,000 per year for Plan 2 loans (2025/26 tax year). This makes it a relatively low-risk form of borrowing.

Business loans: If you have a solid business plan and realistic financial projections, borrowing to start or grow a business can be a sound investment. The income generated by the business should, over time, outweigh the cost of the loan.

Credit builder cards: Using a low-limit credit card specifically designed to build your credit history counts as good debt, provided you make every payment on time and in full. Even small, regular purchases paid off monthly can steadily lift your score. Late or missed payments, however, will have the opposite effect and could cause your credit score to decrease.

What Is Bad Debt?

Bad debt is borrowing that does not increase your net worth or generate income, and typically comes with high interest rates that make the total cost of borrowing far greater than the original amount. Bad debt often accumulates when there is no clear repayment plan in place, or when borrowing is used to fund lifestyle spending rather than investments.

Examples of Bad Debt

High-interest credit cards: Credit cards with an APR of 20% or more can quickly make debt unmanageable. If you only make the minimum payment each month, interest compounds and the balance grows. According to the Financial Conduct Authority, UK consumers owed over £58 billion in outstanding credit card debt as of late 2025.

Payday loans: Payday loans are designed for short-term emergencies but carry extremely high interest rates. If you cannot repay the full amount on your next payday, the debt snowballs rapidly. The FCA has capped the cost of payday loans at 0.8% per day, but even with this cap, borrowing £300 for 30 days would cost you £72 in interest alone.

Car finance on depreciating vehicles: A brand-new car loses a significant chunk of its value the moment you drive it away. Taking out a high-interest loan to finance a vehicle that depreciates quickly means you could end up owing more than the car is worth, a situation known as negative equity.

Buy now, pay later schemes: These have surged in popularity across the UK. While they can be interest-free if repaid on time, missed payments can result in late fees and negative marks on your credit file. A 2024 report by Citizens Advice found that one in four BNPL users had struggled to make a repayment.

Store cards: Store credit cards often carry much higher APRs than standard credit cards, sometimes exceeding 30%. The initial discount offered at sign-up rarely justifies the long-term cost if a balance is carried over.

How to Tell the Difference Between Good and Bad Debt

A simple test is to ask yourself: will this borrowing put me in a better financial position in the future? If the answer is yes, and you have a realistic plan to make the repayments, it is more likely to be good debt. If the borrowing funds something that loses value quickly or comes with punishing interest rates, it leans towards bad debt.

Other factors to consider include:

  • The interest rate: lower is almost always better. Compare the APR before committing.
  • Your ability to repay: can you comfortably meet the monthly payments without cutting into essentials?
  • The purpose: does the borrowing fund an asset that appreciates (property, education) or something that depreciates (electronics, clothing)?
  • The total cost: factor in interest over the full term, not just the monthly amount.

What to Do If Bad Debt Becomes Unmanageable

If you are struggling with bad debt, you are not alone. Millions of people across England and Wales face debt problems every year, and there are formal solutions designed to help.

An Individual Voluntary Arrangement (IVA) is a legally binding agreement between you and your creditors, managed by a licensed Insolvency Practitioner. It allows you to repay what you can realistically afford over a fixed period, typically five to six years, with any remaining unsecured debt written off at the end. An IVA also provides legal protection from creditor action, meaning no more threatening letters or phone calls while the arrangement is in place. You can learn more about the protections on our IVA protection guide.

If your debt level is lower, a Debt Relief Order (DRO) may be more suitable. As of 2026, you can apply for a DRO if your total qualifying debt is under £50,000, your disposable income is no more than £75 per month, your assets are worth less than £2,000, and your vehicle is valued at under £4,000.

For free, impartial guidance, organisations such as MoneyHelper and StepChange offer confidential debt advice at no cost.

Managing Good and Bad Debt: Practical Tips

Whatever your current situation, these steps can help you stay on the right side of borrowing:

  • Create a monthly budget that accounts for all debt repayments before discretionary spending.
  • Prioritise paying off high-interest debt first, sometimes called the avalanche method.
  • Avoid taking on new debt to pay off existing debt unless you are consolidating at a genuinely lower rate. Our guide to debt consolidation myths covers common pitfalls.
  • Check your credit report regularly through Experian, Equifax, or TransUnion to spot errors and track your progress.
  • If debt is affecting your wellbeing, speak to a professional. Debt and mental health are closely linked, and support is available.

Get Help With Bad Debt Today

If bad debt is weighing you down and you want to explore your options, Swift Debt Help can point you in the right direction. We provide general information on debt solutions available in England and Wales, including IVAs, DROs, and bankruptcy.

This article is for general information purposes only and does not constitute financial advice. If you need personalised guidance, please consult a qualified financial adviser or contact a free debt charity such as StepChange or MoneyHelper.

Request a Debt Assessment

Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

Ready to Find Out if You Qualify for Help?

Use our Solution Finder for a free, no-obligation assessment. Our team can help you understand your options and take the first step towards a debt-free future.

Get Help Today

Bankruptcy

Top 5 Bankruptcy Myths

Written by Alex Swindells on . Posted in Bankruptcy, Debt help.

Updated for 2026

If you have been struggling with debt and looking for a way out, bankruptcy might have crossed your mind. But there is a lot of misinformation out there, and it can be hard to separate fact from fiction. In this guide, we break down five of the most common bankruptcy myths so you can make a more informed decision about your finances.

What is bankruptcy?

Bankruptcy is a legal process that can give you a fresh start if you are unable to repay your debts. You can apply for your own bankruptcy regardless of how much you owe. If a creditor wants to make you bankrupt, your debt must exceed £5,000.

Applying for bankruptcy costs £680. Once you are declared bankrupt, an official receiver or insolvency practitioner will look at your finances. Some of your assets may be sold and the money shared between your creditors.

After 12 months, your bankruptcy will usually be discharged, meaning you are released from most of the debts included in it, provided you have met the conditions set out by the official receiver.

If you are weighing up your options, our guide on IVA vs bankruptcy can help you compare the two.

Myth 1: everyone will find out I went bankrupt

When you are made bankrupt, it does become public information. Your details will appear on two government registers: the Gazette and the Individual Insolvency Register.

That said, unless your case is high profile, it is very unlikely that your bankruptcy will be reported in local newspapers or online media. Someone would need to actively search for your name on these registers to find out, and most people simply do not do that.

Your bankruptcy entry is also removed from the Individual Insolvency Register once you are discharged, which is typically after 12 months.

Myth 2: you will definitely lose your job

This is one of the biggest concerns people have, and understandably so. The good news is that for the vast majority of jobs, bankruptcy will not affect your employment.

There are some exceptions. If you work in financial services, law enforcement, or certain regulated professions, your role could be affected. You might not lose your job outright, but your duties could change. It is worth reading through your employment contract carefully to understand any restrictions.

In most cases, you are not legally required to tell your employer. If you are unsure, speak to your employer or seek independent advice. If your employer does take action against you, make sure it is lawful. You may be able to challenge any unfair dismissal.

For more on what to expect before filing, take a look at our guide to 5 things to know before declaring bankruptcy.

Myth 3: you will lose everything you own

This is probably the most common myth of all. Going bankrupt does not mean you will lose every possession.

Certain items are protected. You are allowed to keep:

  • Household essentials like furniture, bedding, and kitchen appliances
  • Clothing and personal items for you and your family
  • Tools of the trade, which are items you need for work, such as a vehicle, books, or equipment

Your home could be at risk if you own property, but even then there are protections in place. The official receiver will consider your circumstances, and in some cases your interest in the property may be dealt with after the bankruptcy period ends.

If your main concern is protecting your assets, it is worth comparing your options. A different approach to managing your debt might suit your situation better.

Myth 4: you will never be able to get credit again

Bankruptcy does have a significant impact on your credit file, but it is not permanent. Your bankruptcy will stay on your credit report for six years from the date of the order. During that time, you may find it harder to access credit, and some lenders will decline your applications.

However, there are steps you can take to rebuild your credit score over time:

  • Make sure you are on the electoral register
  • Pay all bills and commitments on time
  • Consider a credit builder card and use it responsibly
  • Check your credit report regularly for errors

Many people are surprised at how quickly their score can improve once the bankruptcy is discharged. For more practical tips, read our guide on common causes of a decreased credit score and how to avoid them.

Myth 5: bankruptcy wipes out every type of debt

Most unsecured debts are included in bankruptcy and will be written off when you are discharged. These include things like credit cards, personal loans, council tax arrears, and utility bill debts.

But not all debts are covered. The following types of debt will survive your bankruptcy, and you will still be responsible for paying them:

  • Student loans
  • Court fines
  • Child maintenance and family court orders
  • Debts obtained through fraud
  • Personal injury compensation
  • Any debts you take on after the bankruptcy order is made

If you are unsure which of your debts could be included, our guide to which debts can be included in debt solutions is a good starting point.

Is bankruptcy the right option for you?

Bankruptcy is a serious step, but for some people it is the best route to becoming debt free. It is not the only option, though. Depending on your circumstances, an IVA, a Debt Relief Order, or a debt management plan might be more suitable.

The most important thing is to get proper advice before making any decision. Swift Debt Help can talk you through your options and help you find the right path forward.

Request a Debt Assessment

Disclaimer: This article is for general information purposes only and does not constitute financial advice. Financial information entered must be accurate and would require verification. Your individual circumstances will influence the most suitable debt solution for you.

Ready to Find Out if You Qualify for Help?

Use our Solution Finder for a free, no-obligation assessment. Our team can help you understand your options and take the first step towards a debt-free future.

Get Help Today

Person looking at decreased credit score on laptop screen

5 Common Causes of a Decreased Credit Score

Written by Alex Swindells on . Posted in Credit Score, Debt help.

Updated for 2026

5 Common Causes of a Decreased Credit Score

Your credit score affects almost every financial decision you make, from applying for a mortgage to getting a mobile phone contract. If your score has dropped recently, you are not alone. Millions of people across the UK see unexpected dips in their credit rating each year, and the reasons are not always obvious.

Understanding what causes your credit score to fall is the first step towards fixing it. In this guide, we look at five of the most common reasons your score might have decreased, and what you can do about each one.

What Is a Credit Score and How Is It Calculated?

A credit score is a number that represents how reliable you are as a borrower. In the UK, the three main credit reference agencies, Experian, Equifax, and TransUnion, each use their own scoring system. Experian scores range from 0 to 999, Equifax from 0 to 1,000, and TransUnion from 0 to 710.

These agencies collect data from banks, utility providers, mobile phone companies, and public records such as the electoral roll. They build a picture of your borrowing history, including how much credit you have, whether you pay on time, and how often you apply for new borrowing.

Lenders use this information to decide whether to offer you credit, and at what interest rate. A higher score generally means better deals and lower rates. A lower score can mean higher costs, or being turned down altogether.

You can check your credit report for free through services like MoneyHelper’s guide to checking your credit score. It is worth doing this regularly so you can spot problems early.

1. Using Too Much of Your Available Credit

Your credit utilisation ratio is the percentage of your total available credit that you are currently using. If you have a credit card with a £5,000 limit and you have spent £4,000 on it, your utilisation is 80%. That is high, and it sends a signal to lenders that you might be relying too heavily on borrowed money.

Most experts recommend keeping your utilisation below 30%. So on that £5,000 card, try to keep the balance under £1,500 where possible. If you regularly max out your cards, even if you pay them off each month, your score can still take a hit because the balance is often reported before your payment is processed.

On the other hand, using no credit at all can also work against you. Lenders want to see evidence that you can borrow responsibly. If your cards sit unused for months, there is no recent data to demonstrate good financial behaviour.

The key is balance. Use your credit regularly, keep balances low, and pay off as much as you can each month.

2. Missing or Late Payments

Your payment history is the single biggest factor in your credit score. Even one missed payment can leave a mark on your credit file for up to six years, and the impact is immediate. A payment that is 30 days late will trigger a default marker that lenders can see straight away.

If you have a high credit score, the drop from a missed payment can be especially sharp. Someone with a score of 900 might see a bigger numerical fall than someone already sitting at 500, because the models treat the missed payment as more unusual for someone with otherwise clean history.

Multiple missed payments are worse still. If you fall into arrears, where you owe several months of payments on an account, the damage to your score compounds over time. This can make it harder to access affordable credit when you need it most.

If you have missed a payment, the best thing you can do is get back on track as quickly as possible. Set up direct debits for at least the minimum payment on every account. If you are struggling to keep up with repayments, free debt advice is available from StepChange, who can help you work out a plan.

3. Paying Off a Loan or Closing an Account

This one catches people off guard. You would think that paying off a loan would be good for your score, and in the long run it often is. But in the short term, it can actually cause a dip.

Credit scoring models like to see a healthy mix of different credit types. If you have a mortgage, a credit card, and a personal loan, that diversity works in your favour. When you pay off the loan, you reduce that mix, and your score might drop slightly as a result.

Similarly, closing an old bank account or credit card can shorten the average age of your credit history. Older accounts show stability, so removing them can make your credit profile look younger and less established than it actually is.

Before closing old accounts, check whether they carry any annual fees. If an old credit card costs you nothing to keep open, it might be worth leaving it active, even if you rarely use it. Just make sure there are no forgotten balances ticking away in the background, as even a small unpaid amount can generate missed payment markers.

4. Applying for New Credit Too Often

Every time you apply for a credit card, loan, or other form of borrowing, the lender runs a hard search on your credit file. Each hard search is visible to other lenders and stays on your file for 12 months. One or two searches are not a problem, but several in a short space of time can make it look like you are desperate for credit, which is a red flag for lenders.

If you need to compare deals, look for lenders that offer eligibility checkers using soft searches first. A soft search lets you see whether you are likely to be accepted without leaving a mark on your credit file. Many comparison websites and lenders now offer this, so there is no reason to apply speculatively and risk multiple hard searches.

As a general rule, try to leave at least three to six months between credit applications. This gives your score time to recover from any recent searches and shows lenders that you are not applying everywhere at once.

5. Errors on Your Credit Report

Sometimes your credit score drops and you have done nothing wrong. Mistakes on credit reports are more common than you might think. An account that does not belong to you, a payment incorrectly marked as missed, or outdated address information can all drag your score down without you realising.

Under UK law, you have the right to dispute any inaccuracies on your credit report. The credit reference agency must investigate and correct any errors within 28 days. You can also add a “notice of correction” to your file, which is a short statement explaining any unusual circumstances, such as a period of illness that led to missed payments.

Check your report with all three agencies, as they do not always hold the same information. You can access your Experian report through their free service, your Equifax data through ClearScore, and your TransUnion report through Credit Karma. The gov.uk guidance on credit reference agencies explains your rights in more detail.

What to Do If Your Credit Score Keeps Falling

If you have checked all five of the causes above and your score is still dropping, it may be worth looking at the bigger picture. Persistent debt problems can create a cycle where missed payments and high utilisation feed off each other, making recovery harder over time.

There are formal debt solutions available in the UK that can help you regain control of your finances. A Debt Management Plan (DMP) lets you make reduced monthly payments to your creditors based on what you can afford. An Individual Voluntary Arrangement (IVA) is a legally binding agreement that can write off a portion of your unsecured debt after a set period, typically five or six years.

For smaller debts, a Debt Relief Order (DRO) may be an option if your total qualifying debts are under £50,000. The DRO application fee is now free, making it more accessible than ever. For larger debts where other options are not suitable, bankruptcy remains available, though the court fee of £680 still applies.

Each of these solutions will affect your credit score in different ways, and none of them should be entered into lightly. Free, impartial advice from organisations like StepChange or MoneyHelper can help you understand which option is right for your situation.

Get Free Debt Advice Today

If your credit score has dropped and debt is part of the problem, we can help you explore your options. Our team can talk you through the solutions available and help you find a way forward that works for your circumstances.

Contact us today for a free, no-obligation chat about your situation.

Disclaimer: This article is for general information purposes only and does not constitute financial advice. If you are struggling with debt, please seek advice from a qualified professional or contact a free debt charity such as StepChange or MoneyHelper.

Drawing of computer screen that shows 'credit score'

6 Ways To Improve Your Credit Score

Written by Alex Swindells on . Posted in Debt help.

Updated for 2026

Your credit score plays a key role in how much you can borrow, the interest rates you pay on loans, and even your job prospects in some cases. If you find yourself in financial difficulty and miss payments, your score will drop. The good news is there are practical steps you can take to improve your credit score, and many of them are straightforward.

If you are concerned about your credit score, here are 6 ways to improve it.

1. Make all outgoing payments on time

man looking at credit check document

One way to improve your credit score is to make all of your outgoing credit payments on time. If you can get into the habit of paying everything on time, it will show lenders that you are reliable and trustworthy.

If you are regularly missing payments, there are a few things you can do to make paying easier. Set up Direct Debits so that the payments are automatically taken from your account, and write a clear budget to make sure that you don’t miss payments. For more tips on managing your outgoings, read our guide on dealing with debt.

2. Register on the electoral roll

Drawing of person putting polling card in ballot for election vote

One of the easiest ways to improve your credit score is to make sure you are registered on the electoral roll. Many people don’t realise that it can actually have a big impact on your credit score. If you are not registered, lenders have a harder time verifying your identity and this could lead to your application being declined.

Registering is easy. You can register online, and all you need to do is follow the on-screen instructions. If you are already registered, check that all of your details are correct and up to date. If not, update them as soon as possible.

It only takes a few minutes to register, so this is one of the easiest ways to improve your score.

3. Keep credit card debt below 30%

Young concentrated businesswoman in glasses and striped shirt working with papers at home

Your credit utilisation ratio is the amount of credit you are using compared to the amount of credit you have available.

It is best to keep your credit utilisation ratio below 30%. This means that if you have a credit card with a limit of £1,000, you should not have debts of more than £300 on that card.

If your credit utilisation ratio is higher, it suggests to lenders that you may be reliant on borrowing to cover expenses. This could lead to your credit score being lowered. For more on using credit wisely, see our post on how to efficiently use your credit card.

It is a common misconception that not having a credit card at all is better for your credit score. Borrowing small amounts and paying them back on time will improve your score, but you need to avoid borrowing too much. That’s why keeping credit card usage at around 30% or lower is best for your credit score. You can read more about this in our guide to the benefits of using your credit card sensibly.

4. Develop your credit history

Woman using a credit card whilst on her laptop

If you don’t have much of a credit history, it can be difficult to get a loan or a mortgage. This is because lenders don’t have much to go on when they are assessing your application. This is a common issue for younger people who have not borrowed money in the past.

There are a few things you can do to develop your credit history and improve your score. Many lenders offer credit builder cards specifically designed for this purpose. Using one on a regular basis and paying the balance off in full each month will steadily increase your score.

5. Report mistakes on your credit report

Woman on phone to bank to report mistakes on credit report

If you have ever been refused credit, it’s important to check your credit report. Your credit score can be lowered if there are mistakes on your report. These errors can range from incorrect information about your address or date of birth to missed payments that you have already paid.

If you find an error on your credit report, it is important to report it straight away. You can do this by contacting the company to which the credit relates and asking them to update their records. You could also contact the credit reference agencies (Experian, Equifax, and TransUnion) directly and raise a dispute. They will then contact the lender on your behalf. The issue will be investigated and, if appropriate, will be rectified. Your score will then be adjusted accordingly. For more on what can affect your rating, have a look at our article on the common causes of a decreased credit score.

6. Ensure your credit file has no fraudulent activity

fraudulent activity

If you suspect that someone has fraudulently opened a credit account in your name, it is important to take action straight away. This can be done by contacting the police and the credit reference agencies. You should also check your bank and credit card statements regularly for any unusual activity.

Fraudsters taking out credit in your name can seriously damage your score, so it needs to be rectified immediately. Bear in mind that you may have to prove that you did not apply for the credit if it is not immediately obvious that you are a victim of fraud.

How to improve your credit score if you’re struggling with debt

If you are looking to improve your credit score after being declined for credit, or you need access to borrowing just to cover essential outgoings, it may be time to look at other debt repayment options. At Swift Debt Help we can provide general information about debt solutions based on your circumstances. It is important to note that most debt restructuring options will be recorded on your credit file and could have an impact on it. Request a free call back to find out more about the options that may be available to you.

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Disclaimer: For guidance only. Financial information entered must be accurate and would require verification. Other factors will influence your most suitable debt solution.

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