Building a strong credit score doesn’t have to require drastic changes. Small, everyday habits can make a big difference over time.
From managing your credit utilisation to using specialised cards wisely, the following seven practical steps can help you to boost your financial health and avoid pitfalls that could damage your score.
1. Choose Credit Cards Designed to Build Credit
When your credit history is less than ideal, it can feel like an uphill climb. But specialised credit cards are made for exactly this purpose—to help individuals rebuild their financial reputation.
For example, options such as 118 118 credit cards for bad credit cater specifically to those needing a fresh start.
With careful management of such tools, you’ll gradually demonstrate positive financial habits and strengthen your overall credit score effectively over time.
The key is responsible use. Keep balances low and clear the amount in full every month. By doing so, you will show lenders that you’re reliable with money.
2. Keep Your Credit Utilisation Low
Credit utilisation refers to the percentage of your available credit that you’re using. Lenders see high utilisation as risky because it suggests financial strain, even if you make payments on time.
To keep it in check, aim to use no more than 30% of your total credit limit at any given time. For example, if your combined card limits are £3,000, try not to carry balances over £900.
Paying down balances before statement dates helps too, since this is often when lenders report figures to bureaus.
Treating your credit limit like a ceiling—not a target—makes managing this easier.
By keeping utilisation low consistently, you can signal control over your borrowing habits and create confidence for lenders assessing future applications or credit increases.
3. Set Up Automatic Bill Payments
Late payments harm your credit score more than most realise. Even a single missed due date can stay on your report for up to six years, making future borrowing more challenging.
Avoid this risk by setting up automatic bill payments for at least the minimum amount due.
Whether it’s utility bills, loan repayments, or credit cards, automating ensures you never miss a deadline—even during busy periods.
It’s like putting your finances on autopilot: you reduce stress while maintaining punctuality effortlessly.
Just make sure there’s always enough money in the linked account to avoid overdraft fees.
Over time, consistent on-time payments will improve not only your score but also lenders’ trust in your reliability as someone who manages commitments responsibly.
4. Review Your Credit Report Regularly
Your credit report acts like a window into your financial health. It’s what lenders check before deciding whether to offer you credit, and mistakes on it can drag your score down unfairly.
By reviewing your report regularly, you can spot errors such as incorrect account balances or late payments that never happened.
You’re entitled to request free copies of your credit file from major agencies like Experian or Equifax.
If you find inaccuracies, dispute them straight away by contacting the agency in writing with proof.
Think of this habit as giving yourself regular financial “check-ups.” Ensuring everything is accurate keeps surprises at bay and prevents errors from affecting loans, mortgages, or any future financial opportunities you pursue.
5. Avoid Applying for Too Much Credit at Once
Each time you apply for credit, lenders perform a hard search on your file. While one or two applications are fine, too many in a short span can raise red flags and lower your score temporarily.
This happens because multiple applications make you appear financially desperate or over-reliant on borrowing—two traits that concern lenders.
To prevent this, space out credit inquiries by several months and only apply when absolutely necessary.
Before submitting any application, research eligibility criteria to ensure better chances of approval.
Using tools like “soft searches” helps gauge likelihood without affecting your score.
Think of it as pacing yourself instead of sprinting—steady and thoughtful steps lead to stronger long-term outcomes with both lending institutions and your creditworthiness.
6. Use Older Credit Accounts Responsibly
The age of your credit accounts contributes to your overall credit score. Lenders view long-standing accounts as evidence of stable and reliable borrowing behaviour.
Keeping older accounts open, even if they’re not in active use, helps maintain a stronger average account age on your report.
Making small purchases periodically ensures these accounts remain active. For instance, you could use an older card for occasional fuel or grocery purchases and pay it off immediately.
This prevents the account from being closed by the issuer due to dormancy while keeping balances low.
It’s like maintaining a valuable antique: careful usage and attention preserve its worth over time while boosting confidence among potential lenders considering your application history.
7. Limit Closing Old Accounts Without Cause
Closing old credit accounts may seem harmless, but it can negatively impact your credit score in two ways: reducing the average age of your accounts and lowering your overall available credit. Both factors influence how lenders perceive you as a borrower.
Unless there’s a pressing reason—like high fees or security concerns—it’s often better to leave older accounts open, even if unused. This helps maintain a healthy account history while supporting a low credit utilisation ratio.
If you do decide to close an account, choose newer ones first.
It’s like pruning a tree; you trim the weaker branches rather than cutting off well-established limbs that provide strength and stability over time.
Thoughtful decisions here protect long-term financial growth.