Tag: improve credit score

How to Improve Your Credit Score Before a Remortgage

Written by Alex Swindells on March 18, 2026. 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

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

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.

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5 Common Causes of a Decreased Credit Score

Written by Alex Swindells on March 16, 2026. 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.

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.