How to improve a poor credit score

What is a credit score?

A credit score is a number that represents how likely you are to repay loans based on your experience with credit in the past and how well you manage your finances. Ranging from 300 to 850, your score is based on data collected from your payment history, amounts owed, length of credit history, new credit, and types of credit used. 

Lenders look at credit scores to assess the risk of lending money (in the form of traditional loans, mortgages, and finance agreements) to an individual. Higher scores represent financial responsibility and creditworthiness, while lower scores are often related to poor financial management and applying for numerous loans in one go. 

Average credit score

Average credit scores vary from region to region and usually depend on age group. 

For example, the average credit score for a 55+ year old in Wigan is much higher than that of a 21-25 year old in Blackpool. This is not to say that where you live will decide your score for you. Things like your payment history, any new credit, and the amount owed for finance plans and loan agreements can all influence your score.  

What’s classed as a poor credit score?

It’s important to note that different credit agencies use slightly different scoring models. Here at Boshhh, we use and trust Equifax to provide credit insight and support to our customers. Their scoring system is as follows:

Excellent 800-850

Very good 740-799

Good 670-739

Fair 580-699

Poor 300-579

Impact of a poor credit score 

If you’ve struggled to build and maintain your credit score for whatever reason, it can lead to: 

• Rejection of loans (car, private, and student), mortgages, and credit cards

• Denied rental applications 

• Security deposits needed when moving to a new home

• Being denied a mobile phone contract 

• Employment checks 

• Higher premiums 

How to improve a poor credit score

Don’t worry if you’re having some trouble with your credit score at the minute, because they can be changed over time… as long as you know how. Here’s how to give your credit score a boost. 

Check your score

Before anything else, you need to understand your credit score and what it means. Take a look at what’s helping your score and what’s making it decline. But you shouldn’t stop there. Make sure to check under the surface for any errors - including inaccurate personal information or fraudulent accounts opened in your name. These can be disputed with your bank and credit score provider. 

Pay bills on time

Showing financial responsibility by paying all bills in full and on time shows potential lenders you can manage your income efficiently. 

An easy way to make sure they’re ticked off is to set up standing orders for bills for the day after you get paid. This way, you’ll know how much you have left to spend for the month. 

Assess your debt 

Get organised and take a look at how much debt you’re in (if any). 

Make a plan of how you’re going to pay this off and when. 

By setting goals and understanding how much money you owe, you’ll be more motivated to pay it off. 

Dodge hard credit searches 

The more hard enquiries you have, the bigger the effect this will have on your credit report. For example, if you want to get a car loan but don’t have the necessary score, but keep going to different providers, recurring checks will take place. 

This doesn’t look good to potential lenders and poses the risk of lowering your score. If you can, take a few months in between applications, or seek out providers that specialise in providing payment plans for those with low credit and only conduct a soft credit search at most. 

Boost your credit with Boshhh 

Boshhh was founded with the intention of improving the credit scores of those who have had difficulty maintaining them in the past. 

Our flexible SIM-only phone contracts give you the chance to experience a quality network at a price you can afford, all while increasing your credit score. 

With 24/7 access to your reports with our partners at Equifax, you'll have full visibility of your report. 

 Learn more with Boshhh

Ready to take the first step towards financial freedom?

See our plans for more information and get started with Boshhh to watch your credit score skyrocket.