5 Things You Should Never Do When Trying to Improve Your Credit Score
Published 21st of November 2012·Updated 6 April 2026
Reviewed by: Reviewed for accuracy April 2026
Improving your credit score takes time and consistency, but certain common actions actively harm it. Closing old accounts, applying for multiple new credit lines and ignoring your credit report are among the most damaging mistakes. Understanding what not to do is as important as knowing the positive steps.
Short Summary
Your credit score is calculated by three credit reference agencies in the UK: Experian, Equifax and TransUnion. Each uses a slightly different scoring model, but all three weigh the same core factors: payment history, credit utilisation, length of credit history and recent applications.
Actions that seem logical - such as closing cards you no longer use or cutting out credit altogether - can reduce your score rather than protect it. The scoring models reward the responsible use of credit, not the absence of it.
Genuine credit repair takes months, not days. Any company claiming to fix your credit score quickly is either misleading you or operating illegally. There are no legitimate credit repair shortcuts in the UK.
Checking your own credit report is free through services including Experian, ClearScore (which uses Equifax data) and Credit Karma (TransUnion). You should review all three at least once a year.
1. Closing old accounts you no longer use
Closing a credit card or account you have paid off looks like sensible housekeeping but it can lower your score. Credit scoring models consider your credit utilisation ratio - the percentage of your total available credit that you are currently using. If you close a card with a £3,000 limit and owe nothing on it, your total available credit falls, which increases your utilisation ratio on any remaining balances. A higher utilisation ratio lowers your score.
Long-standing accounts also benefit your score through credit history length. An account held for eight years contributes positively simply by existing. Keep paid-off accounts open and use them occasionally (then pay the balance in full) to prevent the account going dormant.
2. Making multiple credit applications in a short period
Every full credit application creates a hard search on your credit file, which is visible to other lenders for 12 months and temporarily reduces your score by a small number of points. Applying for several credit products within a few weeks creates a cluster of hard searches that signals financial stress to lenders.
If you are comparing loans or credit cards, use eligibility checker tools first. These create a soft search, which is only visible to you and does not affect your score. MoneySavingExpert's eligibility calculator and similar tools at comparison sites use soft searches. Only proceed to a full application once you have identified the product most likely to accept you.
3. Cutting out credit entirely
Avoiding all forms of credit might seem like a safe strategy after debt problems, but lenders need evidence that you can manage credit responsibly. No credit history gives them nothing to assess. If you apply for a mortgage or car finance having used no credit for several years, lenders find it difficult to approve you even if you have a perfect repayment record on a previous account.
A simple, practical approach is to use a credit-builder credit card - products such as the Barclaycard Forward or Tesco Foundation Credit Card are designed for people rebuilding credit. Spend a small amount each month (a regular bill, for example) and pay the balance in full by direct debit. This builds a consistent, positive payment history without risk of interest charges.
4. Using a credit repair company
There are no legitimate credit repair companies in the UK. Your credit file contains a legal record of your credit history. No company can remove accurate negative information before it naturally drops off (most negative marks are removed after six years). Any company claiming to "clean" or "fix" your report is either misleading you or attempting to create a false identity file, which is fraud.
If you need help managing debt or dealing with incorrect entries on your credit file, use free services. Citizens Advice offers free, impartial guidance. StepChange provides free debt advice. To dispute inaccurate information on your credit file, contact the relevant credit reference agency - Experian, Equifax or TransUnion - directly.
5. Ignoring your credit report
Your credit report can contain errors, and those errors reduce your score until they are corrected. Common errors include accounts that do not belong to you, old addresses that do not match your current details, and debts showing as unpaid that have in fact been settled. Experian, Equifax and TransUnion all allow you to raise disputes online, and they are required to investigate and respond within a fixed timeframe.
Check all three reports annually because lenders may report to only one or two agencies, meaning a problem on one file may not appear on another.
| Mistake | Why it harms your score | What to do instead |
|---|---|---|
| Closing old accounts | Increases utilisation ratio, shortens credit history | Keep them open and use occasionally |
| Multiple applications | Creates hard search clusters | Use soft eligibility checkers first |
| Avoiding credit entirely | Leaves lenders nothing to assess | Use a credit-builder card responsibly |
| Using a credit repair firm | No legitimate firms exist; risk of fraud | Use StepChange or Citizens Advice |
| Ignoring your credit report | Errors go uncorrected | Review all three files annually |
Frequently Asked Questions
How long does it take to improve a credit score?
Small improvements can appear within one to three months of consistent positive behaviour - paying bills on time, reducing balances and not applying for new credit. Significant improvements from serious negative marks such as defaults or CCJs typically take two to four years as those entries age and carry less weight. Most negative information is removed from your file after six years.
Does checking my own credit score lower it?
No. Checking your own credit file creates a soft search, which is only visible to you and has no impact on your score. Only hard searches from lender applications affect your score. You can check your own file as frequently as you like through Experian, ClearScore or Credit Karma without any negative effect.
Will a default always stop me from getting credit?
A default stays on your credit file for six years from the date it was registered. During that period it will affect applications for credit, particularly with mainstream lenders such as Barclays, Lloyds and Nationwide. However, specialist lenders do offer products to applicants with defaults, typically at higher interest rates. As the default ages and approaches the six-year mark, its impact reduces.
Can a credit reference agency remove accurate negative information?
No. Accurate information - including defaults, county court judgements and late payments - must remain on your file for six years. Credit reference agencies including Experian, Equifax and TransUnion are legally required to maintain accurate records. Only inaccurate or fraudulent entries can be removed, and you can dispute these directly with the agency.
Is it worth paying for a credit monitoring service?
You can monitor your credit file for free through Experian's basic service, ClearScore and Credit Karma. Paid monitoring services offer alerts and additional features, but for most people the free versions are sufficient. If you have been a victim of identity fraud, a paid service with real-time alerts may be worth the cost.