How to Improve Your Credit Score Before Applying for a Mortgage

Your credit score is one of the top things lenders look at when considering a mortgage application, but why is a good credit score important? It affects not only your eligibility but also the interest rates you’re offered. A good credit score can save you thousands over the life of your mortgage. A bad score, missed payments, or county court judgements (CCJs) can limit your options or block your application altogether.

The good news is, you can improve your credit score with some planning and consistency. Many improvements will show on your credit report within three to six months, so act early.

Whether you’re a first-time buyer, remortgaging, or just want to boost your future credit eligibility, this article explains how credit scores work, how to improve your credit score and build credit history, and how to present yourself as a low-risk borrower to lenders.

How Credit Scores Work

Before you can start improving your credit score, you need to understand how it’s calculated. In the UK, credit reference agencies Experian, Equifax, and TransUnion use slightly different scoring models, but they all look at the same key factors from your credit report:

• Payment history: Timely payments on credit accounts, loans, and even utility bills.
• Credit utilisation: The proportion of your available credit limit you’re using.
• Length of credit history: Older accounts with good standing improve your average age.
• Types of credit: A mix of secured lending and unsecured credit cards is viewed positively.
• Recent activity: Multiple credit applications can reduce your score temporarily.
• Negative marks on your credit: Individual voluntary agreements and bankruptcy can harm your credit score for up to six years.

Check your credit report with all three major credit bureaus. Some banks offer this for free, or you can access it directly through the credit reference agency websites. Reviewing your Experian credit report is a good place to start.

Clear Missed Payments and Defaulted Accounts

Late or defaulted payments are one of the biggest red flags for mortgage lenders. They damage your credit record, stay on your credit file for six years, and often tell lenders you’re a high-risk borrower.

To fix this:

• Make a list of all current credit card accounts, loans, and debit balances.
• Contact your credit card issuer or lender if you’re experiencing financial difficulties.
• Pay off any collection accounts, defaults, or CCJs where possible.
• Set up direct debits for regular payments so you don’t miss any in the future.
• Pay at least the minimum on active credit accounts, or more if you can.

Even defaulted payments marked as “satisfied” show responsibility and can improve how lenders view you.

Reduce Your Credit Utilisation Ratio

Your credit utilisation ratio is how much of your total available credit you’re using. For example, if your combined agreed credit limits are £10,000, and you owe £3,000, you’re using 30%.

Aim to reduce this to below 30%, ideally under 10%, for the best results.

To improve this:

• Pay down credit card balances consistently to build your payment history.
• Ask for higher credit limits on existing accounts if you can manage them responsibly.
• Don’t close old cards once you’ve paid them off; doing so reduces your available credit.
• Keep the same accounts open and use them occasionally for small purchases.

This shows healthy credit management to lenders and keeps your utilisation low.

Register on the Electoral Register

Registering to vote is a quick win for your credit score. Lenders and credit bureaus use the electoral register to verify your identity and address. If you’re not listed, it can harm your credit profile.

• Register online at gov.uk.
• Ensure your personal information is consistent across all financial records.

This update will show on your file within a few weeks and may raise your credit score fast.

Build Credit History with the Right Tools

If you have a thin history, lenders don’t have enough data to assess your reliability. This doesn’t always mean bad credit, but it can still stop you from getting approved.

To start building a history:

• Use secured credit cards or credit builder loans to show responsible borrowing.
• Apply for unsecured credit cards only if you meet the criteria and can pay them off in full each month.
• Become a named user on a family member’s card if they manage it well.
• Ensure utility bills, mobile phone contracts, and other service providers’ checks are in your name and reported to agencies.

Building a long credit history of regular payments and managing accounts well shows lenders you’re more likely to be a low-risk applicant.

Remove Errors and Guard Against Fraud

Even small mistakes on your credit record can affect mortgage applications. Check all three credit bureaus for:

• Incorrect or duplicate accounts
• Outdated addresses or names
• Late payments that were actually made on time
• Accounts that should’ve been closed

Dispute errors directly with the relevant credit reference agency. They must investigate and update the report within 28 days if the error is confirmed.

Also, keep an eye out for fraudulent activity. If you see something unfamiliar, such as a credit application you didn’t make, report it immediately and consider making a fraud alert.

Be Careful with Joint Bank Accounts and Financial Links

Having a joint account or other shared financial products with someone ties your credit score to theirs. If they have a poor credit history, it can affect how lenders view your credit, too.

• Close or separate any joint bank accounts if you no longer manage finances together.
• Remember, joint account holders remain financially linked until accounts are closed.
• Avoid opening joint accounts unless you’re confident in the other person’s financial habits.

A financial link only applies to current joint arrangements, so once closed, their actions no longer impact your credit file.

Apply for New Credit at the Right Time

Each new credit application results in a hard check on your report, which can lower your score. Avoid applying for:

• New credit cards
• Personal loans
• Car finance

…in the six months before applying for a mortgage. Ensure you pay bills on time. While utility companies don’t usually report arrears to credit bureaus, on-time payments can help your credit score.

That said, mortgage inquiries are treated differently. If you apply to multiple lenders within a 14–45-day window, the major credit bureaus typically count them as one.

Ask about soft searches if you’re only comparing rates. These don’t impact your score and can help you prepare more effectively.

Check Your Credit Score Regularly

Obtaining a good credit score isn’t a one-off task. It takes time and consistency.

• Use free credit monitoring tools from your bank or third-party organisations.
• Set reminders to check your reports every few months.
• Track improvements like reduced debit balances, on-time payments, and closed accounts.
• Keep records in case lenders, solicitors, or financial servicers like your mortgage broker need to understand your credit journey.

Even if you have a bad credit history, evidence of steady progress will support your application.

How Can Eden Hawk Help?

At Eden Hawk Financial Solutions, we turn your improved credit into mortgage opportunities. We work with many lenders who accept bad credit, higher-risk applicants, and specialist applications for self-employed and others with non-traditional income. While there are steps we can take to help you get on the property ladder with bad credit, it’s important to take steps to improve your credit score. Contact us today to learn how we can support your financial journey to homeownership.