Credit Library

As a student, one of the last things on your mind is probably your credit score. In fact, you probably don’t even know what a credit score is or why it’s important and why you need to look after it. 

So to get you up to speed we’ve broken it down for you - in terms of:

  • What is a credit score?
  • Why’s it important?
  • How can you improve your credit score - without much effort?!

What’s a credit score? & Why is it important?

In simple terms, your credit score is a 3 digit number that represents your creditworthiness. It is based on your credit history and measures how much of a risk you are to lenders.

Lenders will look at your credit score to gauge your ability to pay off debt and whether you're a reliable borrower. The higher your credit score, the more likely you are to get favourable terms and rates, as well as being approved for credit agreements - like loans and credit cards. The lower your interest rate, the less you will have to pay in the long run.

Having a good credit score can also help you get better deals on non-loan related items. Many landlords, utility companies, and insurance companies will use your credit score to determine how much you'll pay in fees, deposits, and premiums. The higher your credit score, the more likely you are to get the best deals.

So having a good credit score is an important part of managing your financial health. And so, It’s important to understand how credit scores work and how to maintain a good credit score. 

How can you improve your credit score - easily?

You can start building your credit score by using credit responsibly from the get go! Showing lenders you can make on time payments every time will positively impact your score and indicate to lenders that you are a responsible borrower - whom they can trust. Providing this confidence to lenders will mean they're more likely to lend to you in the future.   

3 Easy things to improve your credit score;

  1. Register to vote - Getting on the electoral roll is one of the easiest and simple things you can do to improve your credit score. Once you register to vote your details are recorded in your report. This means lenders can confirm your name and address details. To vote in the UK, register at
  1. Pay your bills on time -Another great way to improve your credit score while not putting too much effort in - is to make sure you pay the bills on time - from rent payments, utility bills to mobile phone contracts. If you don’t make on time payments it could have a negative effect on your credit score. 
  1. Make your rent payments count - By reporting your rental payments to the credit bureaus you could see improvements to your credit score. 

For more ways to improve your credit score check out this blog.

Overall, having a good credit score can help you to save money and make it easier to access financial services, so it is important that you’re aware of your credit score and work to keep it in good standing.

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