How to Improve Your Credit Score – with the Support of a Credit Union
Your credit score plays a major role in your financial wellbeing. It affects not only your ability to get a loan or mortgage, but also the rates you’re offered, your access to mobile phone contracts, and even car insurance. This is why the Credit Union makes it, its mission to offer a fair interest rate to everyone.
At a Eastern Savings & Loans, we’re not just here to lend, we’re here to help you build a stronger financial future. Whether you’re just starting out or looking to repair past credit issues, here’s how you can improve your credit score with the help of your local credit union.
Improving your credit score isn’t about quick fixes or shortcuts it’s about building healthy, consistent financial habits over time. While credit scoring can feel like a mystery, especially since every lender has its own criteria, there are practical steps you can take to strengthen your credit profile. And the good news is, your Credit Union can be a valuable partner on this journey.
Whether you’re trying to repair past issues, build a credit history for the first time, or get in shape for a major application like a mortgage, here’s how you can improve your credit score with support from a community-focused, member-first financial institution.
Ways to improve your Credit Score
1. Start by Checking Your Credit Reports
Before you do anything else, it’s important to know what’s on your credit report. Credit agencies like Experian, Equifax, and TransUnion hold detailed records about your financial history. Sometimes, these reports contain errors or outdated information, and if left unchecked, these mistakes can hurt your chances of getting approved for credit.
Checking your credit reports is free, and you should do it at least once a year or before any major financial application. If you’re unsure how to read your report or what to look out for, check out Money Savings Expert for more information. Taking time to understand your report puts you back in control.
2. Make Sure You’re Registered to Vote
Being on the electoral roll is more important than most people realise. It’s not just about voting, it’s also a key part of your credit profile. Lenders use electoral data to verify your name and address, so not being registered can reduce your chances of being approved for credit, even if everything else looks good.
If you’re not registered, you can do it easily online at gov.uk. It only takes a few minutes, and it can make a meaningful difference to how lenders (and credit scoring systems) view you. Your Credit Union might also ask if you’re registered, especially when assessing a loan application or helping you improve your financial wellbeing.
3. Always Pay On Time
Few things affect your credit score more than missed or late payments. Even one missed payment can stay on your file for years, potentially impacting your ability to get a loan, a mortgage, or even a mobile phone contract.
Setting up direct debits can help ensure your bills are paid on time, even if you only set them up for the minimum amount. Of course, it’s always better to pay more than the minimum where possible, but consistency is key.
If you’re struggling to keep up with payments, your Credit Union is there to support you not judge you. Speaking to them early can often lead to affordable, flexible repayment plans that protect your credit score and reduce stress.
4. Keep Your Credit Separate from Others
If you’ve ever opened a joint bank account, applied for a mortgage with someone else, or shared financial products with a partner or flatmate, your credit files could be linked. This means their credit behaviour can affect your own applications even if your finances are otherwise in good shape.
If your financial connection with someone has ended (like after a breakup or moving out), it’s important to officially “de-link” your credit by requesting a notice of disassociation from the credit reference agencies.
5. Avoid Making Too Many Credit Applications in a Short Time
Every time you apply for a credit product, it leaves a mark on your credit file. A few applications spaced out over time are perfectly normal, but several in a short period can look like you’re desperate for credit, which can raise red flags for lenders.
If you’re considering applying for a loan or credit card, it’s often a good idea to check your eligibility first. Some Credit Unions and trusted financial sites offer soft search tools that show whether you’re likely to be approved without affecting your score. This helps you apply with confidence and avoid unnecessary marks on your report.
6. Keep Your Personal Information Up to Date
Your credit report relies on accurate personal data, including your current address. Old credit accounts, like a long-forgotten mobile contract or department store card can sometimes still be listed under a previous address. If that happens, it can cause confusion during credit checks and lead to unnecessary rejections.
Go through your credit report carefully and make sure every open account is linked to your current address. If something looks out of place, contact the lender to update your details or close the account.
7. Consider a Loan from Your Credit Union
If you have little or no credit history or if you’re recovering from past financial issues it can be difficult to get approved for mainstream credit. That’s where a Credit Union can step in.
Many Credit Unions offer credit-builder loans or small loans to help build your credit file. Which are designed to help you build a positive repayment history while saving money at the same time. You may borrow a small amount, which is held in a savings account until it’s repaid, helping you build a track record of on-time payments. Unlike payday lenders or high-interest credit cards, Credit Union loans are affordable, ethical, and tailored to your circumstances.
8. Don’t Rely on Payday Loans
While payday loans might seem like a quick solution, they can do serious harm to your credit file. Even if you repay them on time, some mortgage lenders will automatically reject applicants who have used payday loans, as it’s seen as a sign of financial instability.
If you need short-term credit, speak to your Credit Union first. They’re often able to offer smaller, low-interest emergency loans with no hidden fees or traps.
9. Make Rent Work for Your Credit
Paying rent on time is a major responsibility, but until recently, it didn’t help your credit score. That’s changing now. Services like CreditLadder and Canopy can report your on-time rent payments to credit reference agencies, helping you build a stronger credit profile even if you’re not a homeowner.
10. Reduce Your Debt If You Can
Your total amount of debt affects your credit score, especially when it comes to credit cards. Lenders look at how much credit you’ve used compared to what’s available to you. This is known as your credit utilisation. Ideally, you should try to keep this below 25% of your total limits.
Paying off some of your balances, even a small amount, can quickly improve your score.
11. Be Patient with Defaults Or Dispute Them if They're Wrong
If you have a default on your credit file, it can seriously limit your options. However, if the default is inaccurate or unfair, you have the right to challenge it. Contact the lender first, and if needed, escalate the complaint to the Financial Ombudsman.
If the default is legitimate, then time and consistent repayment behaviour are your best allies. Defaults usually disappear after six years, and the older they are, the less impact they tend to have, especially if your recent financial habits have been responsible.
12. Use Your Credit Union as a Long-Term Financial Partner
Perhaps the most important step of all is to recognise that you’re not alone. Credit Unions exist to serve their members not to profit from them. That means you can expect fair decisions, personal support, and real solutions tailored to your financial goals.
From offering affordable credit to providing budgeting help, credit-builder loans, and financial education, your Credit Union is here to help you improve your credit score, gain confidence, and build a stronger financial future.