Thousands of people have checked their credit scores already this month
A simple task that many Brits neglect could be silently damaging their credit rating, and it requires just minutes to fix. With millions fretting about their financial situation, a spike in online searches shows mounting confusion over how credit scores actually work.
In the past month alone, searches for ‘does checking your credit score lower it’ have soared by 3,700%, while ‘how to increase credit score quickly’ has risen by 2,550%. Official statistics highlight the issue. Data from the Office for National Statistics reveals 26% of UK adults lack confidence in managing their money, with one in eight deemed to have very low financial capability.
However, one of the simplest methods to enhance how lenders perceive you has nothing to do with debt amounts or repayments. Charlie Evans, personal finance expert at Compare the Market, explains that neglecting to register on the electoral roll can make borrowers seem riskier – even if they have never missed a payment.
He said: “Lenders use the electoral register to verify identity. If you are not registered, it could make you appear as a higher risk. Check to make sure you’re registered.”
Banks and credit card companies routinely cross-reference applications against the electoral register to confirm who you are and where you reside. If your name is absent – or your address is outdated – it can trigger warning signals.
The solution is simple. Registering to vote costs nothing, can be completed online and, once updated, may boost your credit profile almost instantly. The alert emerges as many people mistakenly believe credit scores are only influenced by major financial choices. In truth, routine paperwork can have a surprisingly significant impact.
Research by the Financial Conduct Authority reveals that fewer than two in five people who examined their credit report in 2024 claimed they grasped it “very well”. Nevertheless, credit impacts nearly everyone – approximately 84% of UK adults held some type of loan or debt in the year to May 2024.
Specialists warn that being missing from the electoral register can be especially harmful for tenants, younger people and those who relocate regularly – demographics already more prone to difficulties accessing reasonably priced credit.
With mortgage rates, car finance and even mobile phone deals influenced by credit scores, ensuring proper registration could represent one of the fastest improvements available.
As Mr Evans explains: “Understanding what affects your credit score can help you spot issues early and protect your financial options, whether you’re thinking about a loan, a credit card or a bigger life purchase further down the line.”
Additional factors that can affect a credit rating include:
* Having financial connections to others: “Sharing a joint account, mortgage or even a household bill can financially link you to another person. If they miss payments, it might affect your credit file too. So, be careful who you’re tied to financially and communicate with them.”
* Relocating frequently: “Regular changes of address can sometimes be interpreted as instability, particularly if records are not updated consistently. Try to keep consistency where you can.”
* Possessing minimal or no credit history: “Living with parents or avoiding credit altogether may save money in the short term, but a “thin” credit file can make it harder for lenders to assess you. Even small things like utilities and mobile phone contracts can start building a history.”
* Shutting down old, dormant credit accounts: “While it can feel helpful to tidy up unused cards, some lenders like to see a longer credit history or available credit. Closing long-standing accounts may reduce the length of your credit history or available credit. This means, in some cases, keeping an account open, but unused, can be less damaging than closing it outright.”
* Using credit cards for cash withdrawals: “Cash advances are often viewed as higher-risk behaviour and could have a negative impact on your score. Avoid this as much as you can.”
* Always displaying zero balances: “For active credit accounts, some scoring models may slightly penalise accounts that never show activity, as lenders cannot see evidence of ongoing credit use. While you shouldn’t use credit carelessly or unnecessarily, if you can make some regular payments and pay them off at the end of the month, you’re proving you’re a responsible borrower.”
* Serving as a guarantor: “If someone you support misses payments, it can directly affect your own credit record. Be very careful who you agree to act as a guarantor for and avoid it, if possible.”
* Outstanding fines or minor charges: “Even minor unpaid parking fines or library charges can escalate and be recorded as missed payments if left unresolved. Keeping on top of even these small things proves financial responsibility.”
Mr Evans said: “Credit scores are often treated as mysterious or intimidating, but in reality they’re built from lots of small signals over time. Many people focus only on debt levels or missed payments, without realising that everyday admin, like updating your address or staying on the electoral roll, might also make a difference.”
