How to Fix a Bad Credit Score: A Step-by-Step UK Guide
Published 9th of September 2012·Updated 16 April 2026
Reviewed by: Reviewed for accuracy April 2026
You can fix a bad credit score by paying down outstanding debts, keeping up with all repayments on time, and building a positive credit history gradually using a credit builder card or similar product. There is no overnight fix, but most people see meaningful improvement within six to twelve months of consistent effort.
Short Summary
Paying off any debts that have been passed to a collection agency is the single most important first step. These accounts prevent your score from improving until they are resolved.
Checking your credit report with Experian, Equifax, or TransUnion is free and does not affect your score. Reviewing it regularly helps you spot errors and track progress.
If you have no current credit, a credit builder card designed for people with poor credit histories is usually the easiest way to start. Use it for small purchases and pay the balance in full each month.
Most negative marks, including missed payments and defaults, drop off your credit file after six years under UK credit reporting rules. The older the mark, the less damage it does over time.
Fixing a bad credit score takes patience. Disciplined behaviour over twelve to eighteen months can move you from a poor to a fair rating with the main credit reference agencies.
Why is my credit score so low?
Your credit score is low because of one or more negative marks on your credit file. Common causes include missed or late payments, defaults, county court judgements (CCJs), high credit utilisation, or having very little credit history at all. Checking your full credit report with Experian, Equifax, or TransUnion will show you exactly what is dragging your score down.
All three agencies offer free access to your statutory credit report. Experian and ClearScore (which uses Equifax data) also offer free ongoing monitoring. Knowing what is on your file before you take action means you are not working blind.
How do I deal with debts sent to collection agencies?
Paying off collection accounts is your first priority. A debt passed to a collection agency creates a default on your file, and that default will not start ageing properly until the account is settled. In the UK, defaults remain on your credit file for six years from the date of the default, regardless of whether you pay.
Contact the collection agency directly to agree a repayment plan or a full settlement. Once paid, ask for written confirmation and check that your credit file is updated. If the default date is recorded incorrectly, you can raise a dispute with the relevant credit reference agency.
What should I do with my existing credit accounts?
Keep your existing accounts open and in good standing. Closing credit card accounts can actually reduce your score temporarily because it lowers your total available credit and increases your credit utilisation ratio. The FCA-regulated credit reference agencies weigh utilisation heavily in scoring models.
Focus on paying every bill on time, every month. Set up direct debits for at least the minimum payment so you never miss a due date. Then pay as much extra as you can afford on top. Aim to keep your credit card balances below 25 per cent of your credit limit.
If you have several cards with balances, concentrate repayments on the one with the highest interest rate first while making minimum payments on the others.
How do I build credit if I have none?
If you have little or no credit history, you need to create a track record. A credit builder credit card is the most reliable route. Providers such as Aqua, Vanquis, and Capital One offer cards specifically for people with poor or thin credit files. The interest rates are high, so pay the balance in full each month to avoid charges.
A second option is a credit builder loan, sometimes called a savings-backed loan, offered by providers such as Credit Union or Loqbox. You make fixed monthly payments into a locked account, and the repayment history is reported to the credit reference agencies. At the end of the term you receive the savings.
A mobile phone contract on your name also reports to credit reference agencies and can help build your profile over time.
How long does it take to fix a bad credit score?
| Starting position | Realistic improvement timeline |
|---|---|
| One or two missed payments | 3 to 6 months of on-time payments |
| Settled default, no new credit | 6 to 12 months |
| Active CCJ or recent default | 12 to 24 months minimum |
| Bankruptcy or IVA (discharged) | 2 to 4 years to reach a fair rating |
These are approximate timelines. The exact outcome depends on your full credit history, how many negative marks you have, and how consistently you behave going forward. According to Experian, even one or two months of on-time payments can begin to nudge a score upward.
How do I check my credit score without damaging it?
Checking your own credit score is a soft search and has no impact on your score whatsoever. Only hard searches, which lenders carry out when you apply for credit, leave a visible mark on your file.
You can check your score for free using Experian (free basic account), ClearScore (Equifax data), or Credit Karma (TransUnion data). Each agency uses a slightly different scoring model, so your score may vary between them. What matters more than the number is the underlying data on your report.
Should I apply for new credit while rebuilding?
Be selective. Each full credit application triggers a hard search on your file, and multiple hard searches in a short period can lower your score further. Use eligibility checkers (available on MoneySavingExpert and comparison sites like MoneySuperMarket) before applying. These use soft searches and do not affect your score.
Start with one credit product, manage it well for three to six months, and only apply for additional credit once your score has started to recover. Applying for products you are unlikely to be accepted for wastes hard search allowances and slows your recovery.
What else affects my credit score?
Being on the electoral roll at your current address is one of the simplest things you can do. Lenders use it to verify your identity and address. Registering takes a few minutes at gov.uk and the improvement can show up within a few weeks.
Financial associations matter too. If you share a joint account or mortgage with someone who has a poor credit history, their record can affect how lenders view you. If that relationship has ended, contact the credit reference agencies to request a financial disassociation.
Frequently Asked Questions
How quickly can I improve my credit score?
Most people see some improvement within three to six months of consistent on-time payments and reduced credit utilisation. More significant improvements, such as moving from poor to fair, typically take twelve to eighteen months. There are no legitimate shortcuts.
Does paying off a default remove it from my credit file?
No. In the UK, a default stays on your credit file for six years from the date it was recorded, whether you pay it or not. Paying it does change its status from "outstanding" to "satisfied", which lenders view more favourably, but the mark itself remains.
Can I get a credit card with a very bad credit score?
Yes. Cards from providers such as Aqua, Vanquis, and Capital One are designed for people with poor credit histories. You are likely to receive a low credit limit and a high interest rate initially. Pay the balance in full each month to avoid interest and build your score.
Will checking my credit score lower it?
No. Checking your own score is a soft search and has no effect on your credit file. Only hard searches made by lenders when you apply for credit are visible to other lenders and can temporarily reduce your score.
How many points does a missed payment take off my score?
The exact figure varies by agency and your overall profile, but Experian suggests a single missed payment can reduce a score by 60 to 110 points. The impact reduces over time, and the mark disappears completely after six years.
Should I use a credit repair company?
Generally no. Credit repair companies charge fees to do things you can do yourself for free: checking your report, disputing errors, and writing to creditors. The FCA has warned consumers about firms making misleading claims about their ability to improve credit scores. Use free services such as StepChange, Citizens Advice, or the Money Helper service instead.