Understanding and Improving Your Credit Report
Whether you're applying for a personal loan, trying to rent a flat, or even setting up a new mobile phone contract, your credit history is often the deciding factor. But don’t worry, if your credit report isn’t perfect, there are steps you can take to improve it.
Your credit report plays a big role in your financial life.
We believe in helping local people access fair, affordable financial services. This guide explains what your credit report is, how it impacts you, and what you can do to build a stronger financial future.
What Is a Credit Report?
Your credit report is a detailed record of your borrowing and repayment history, managed by credit reference agencies like Experian, Equifax, and TransUnion. It includes:
Credit cards and loans you’ve taken out
Whether you’ve paid on time
Your current credit balances
Missed payments, defaults, or County Court Judgments (CCJs)
Electoral roll status
Financial associations with other people
Lenders use this information to decide whether to offer you credit—and on what terms. That’s why improving your credit report in the UK is so important if you want better access to financial support.
Why It Matters
Your credit report affects more than just big purchases. It can impact:
Loan eligibility with your credit union
Access to community banking services
Utility accounts, car insurance, or phone contracts
Mortgage rates or tenancy agreements
At Wessex Community Bank, we consider the whole picture, not just your score. But having a strong credit report can still open doors and give you more affordable options when it comes to borrowing.
What Impacts Your Credit Score?
There are several common factors that influence your score:
Payment history: Missed or late payments stay on your file for up to six years.
Credit utilisation: High balances compared to your credit limit can lower your score.
Hard searches: Too many credit applications in a short space of time may signal financial stress.
Public records: CCJs, IVAs, or bankruptcies have a strong negative effect.
Length of history: Longer, well-managed accounts are beneficial.
Links to others: Joint finances with someone who has poor credit can impact your score.
You can view your report for free via:
Look for:
Mistakes or unfamiliar accounts
Outdated addresses
Incorrect missed payments or defaults
If you spot something wrong, raise a dispute with the credit agency, it could help improve your credit profile more quickly than you think.
7 Simple Ways to Improve Your Credit Report
Improving your credit score takes consistency, but small steps add up. Here’s how members of Wessex Community Bank and anyone across the UK can build a better report:
1. Register on the Electoral Roll
Sign up at your current address at gov.uk/register-to-vote. Lenders use this to confirm your identity and address.
2. Pay on Time, Every Time
Set up direct debits to cover credit cards, utility bills and loan repayments. Just one missed payment can stay on your report for six years.
3. Keep Credit Balances Low
Use less than 30% of your available credit. If your limit is £1,000, try to stay under £300 to show lenders you’re managing well.
4. Avoid Too Many Credit Applications
Each application triggers a hard search. Applying for multiple loans or cards in a short time can reduce your score.
5. Consider a Credit-Builder Loan
Some lenders—including community banks like Wessex—offer small loans to help you build credit safely. Explore our personal loans designed with fairness and affordability in mind.
6. Fix Errors and Remove Old Data
Correcting mistakes—like incorrect missed payments—can quickly improve your report. You can also request that outdated data be removed after the legal time limit.
7. Disassociate Financial Links
If you’ve separated from a partner you once shared credit with, request a "notice of disassociation" from credit agencies to remove their influence from your report.
How Long Does It Take to Improve?
Some improvements (like fixing mistakes or registering to vote) can show results within a month. Others, like building a repayment history, take several months of consistent, positive behaviour. Credit scores in the UK update regularly, so progress is possible with patience