Debt & Your Credit Score

Throughout your life, your credit score will play a key role in the financial products you take out, therefore it’s important to know how your debt can affect it.

Get Debt Help

Home > Credit Score & Debt

This Guide Includes

1. Debt and your credit score

2. How debt affects your credit score

3. Where can I check my credit score?

4. Who looks at my credit score?

5. What is considered a good/bad credit score?

6. How to improve your credit score


Get Debt Help Now

Debt and your credit score

A credit score is a number that reflects the likelihood of you paying credit back. Your credit score is made up of things such as your current total amount of debt, details of unpaid debt, details of any defaults and the amount of credit you have available, for example available credit on your credit card.

Get Debt Help & Advice

Our team of advisers are here to support and advise you every single step of the journey.

Get Debt Help Now

Throughout your life, your credit score will play a key role in the financial products you take out. For example, when applying for a credit card or mortgage, it will determine whether your application is accepted and what interest rate you end up paying.

How debt affects your credit score

Failure to repay a debt can have a negative impact on your credit score. Missing payments or being late with payments can remain on your credit report for up to 7 years. If a creditor believes you are unable to pay what you owe, they may write your account off as a loss and close your account. If a creditor feels they no longer can recoup a debt, they may sell the debt to a collection agency which would negatively affect your credit score and stay on your report for 7 years.

If through debt, you have had items repossessed, this information too would appear on credit reports and would tell potential lenders you failed to repay an important debt as agreed.

Where can I check my credit score?

There are three main UK credit reference agencies and a number of free places to check your scores. The largest credit reference agencies in the UK all offer some type of free check. They are:

Equifax www.equifax.com
Experian www.experian.com
Call Credit www.callcredit.co.uk

Who looks at my credit score?

People can only see your credit score if they have a legitimate reason to.

Companies that may look at your credit score include banks, mortgage providers, creditors and lenders, potential employers, utility and service companies, letting agents and landlords, debt collection agents and insurance companies.

What is considered a good/bad credit score?

A credit score is a number typically between 300 and 850. People with a higher score are often seen as lower risk, which means lenders are more likely to give them credit. However, having a low credit rating needn’t be a problem, if you can budget well from month to month and manage without having to take out new credit any more.

How to improve your credit score

It is possible to take actions to help improve your credit scores. One of the main ways to do this is by paying your bills in full and on time, as agreed under the terms of your contract with the lender. Positive payment history i.e. not missing payments, is the single most important factor in many credit scoring models determining credit scores.

Another way of improving your credit score is to only apply for, and open, credit accounts when you really need them. This can help positively affect your credit history and reduce hard inquiries.

Reviews & Testimonials

Charlotte
2021-05-04
I really appreciate the support I was given regarding debt advice. I was provided with the upmost respect and there was no judgement at all. As difficult as it was to go through my situation, the advisors made me feel comfortable and were able to support me to find a solution to better manage my debts. A huge thank you to Jay and Keeley.
IB Whittaker
2021-04-28
I was in a really bad situation due to a sad divide between my family but when I came to Refresh Debt Services, my mind was almost at complete ease. Keith Brady in particular is a lovely advisor and does his utmost to not only help, but follow each step along the way with perfect understanding of each situation. Couldn't recommend this company enough.
Michelle D'Arcy
2021-04-28
Keith was great! constantly asked if I had any questions, made sure I understood everything, didn't rush me when I was getting information. Totally professional but also put me at ease and we even had a little joke. The weight of the world has been lifted off my shoulders. 100% recommend them.
Craig Newkland
2021-04-28
Very very good service and advice. People at Refresh are friendly, polite and knowledgeable. Would recommend to anyone.
Linda Harvey
2021-04-27
From the day i started my DMP the team have been more than helpful and respectful. Over the Last years i have had know reason to contact Refresh as i never had any issues with my payments ect. In the last week as my DMP has come to an end i needed advice and support with being able to show proof my DMP had come to and end and i now owe nothing, but also a huge weight lifted from my shoulders. Brenna my account manager was soo helpful and understanding and took her time to chat to me and send me all the info i had asked for. These people are not judgmental or insensitive, just helpful people trying to help you get back on track!! Thank you
jean roaach
2021-04-17
I found refresh very helpful when I was struggling with my debts. I received monthly statements and updates on what I was paying and when things changed and was only to happy to help with any problems I had all ways pleasant on the phone and understanding. Lucky enough I am debt free thanks to refresh would highly recommended them
Sarah
2021-04-15
Keith was so helpful! Made me feel very comfortable to talk to him about the help I needed. Would recommend anyone who is struggling to talk to him! Fantastic service! Couldn’t be more grateful of his time and help!
Carolyn
2021-04-03
Keith was absolutely brilliant. I was a victim of a sophisticated Bitcoin scam which has been largely responsible for my present financial predicament and I feel embarrassed and ashamed that I allowed this to happen to me.As a result I was really scared as I began to think that everything was fraudulent including Debt Management agencies. Right from the start I felt safe and reassured with Keith. He not only knew his stuff but validated my feelings and perceptions, was not at all judgemental and his concern and empathy were genuine with marked social, psychological and emotional intelligence and sensitivity. For the first time since I realised I had been scammed I could sleep. I felt protected and I still do. He would make a very good psychiatrist.
customer
2021-04-01
From the moment I spoke to Keith he put me at ease. He professionally took me through the possible steps, answering any questions that I had and his empathy and reassurance was very appreciated. Once I came to a final decision on what I needed Keith again answered any other questions and quickly put the plan into action. Honestly I had spent so many days/nights worrying about the debts once I had finished talking to Keith I felt like a huge weight was lifted from My shoulders!! I can’t thank Keith enough for taking the time to listen and then implement the plan for me! 10/10
Zdenka Suchankova
2021-03-29
Its a very friendly staff, just 5:45 I wait for next phone call and now its a5:50 and nobody call me. Something wrong?

News, Updates & Events

council-tax-bills

Temporary Relief From Council Tax

Temporary relief from Council tax, rent and other forms of debt arrears have been introduced as the “Breathing Space and Mental Health Crisis Debt Respite Schemes” are launched by the Government.

Read more