Building a UK Credit Score as an Immigrant: Complete Guide

Why Credit Matters in the UK

Your credit score affects many aspects of life in the UK:

• Renting a property (many landlords run credit checks)
• Getting a mobile phone contract (see our phone contract guide)
• Opening certain bank accounts
• Getting a credit card
• Applying for a mortgage (see our property guide)
• Some car insurance providers check credit
• Broadband and utility contracts

Without a credit history you are not recorded as risky. You are simply not recorded. Which route you are on — Skilled Worker, spouse or any other — makes no difference to a credit file, because credit reference agencies do not hold immigration status.

Step 1: Register on the Electoral Register, If You Can

GOV.UK lists the permitted uses of the full electoral register, and one of them is checking applications for loans or credit. That is the published link between the register and lending. Your name and UK address go on the full version and cannot be opted out of; the separate "open register", which anyone can buy a copy of, is the one you can opt out of, and opting out does not affect the full version.

You can only be on the register if you are entitled to register to vote, and the rules differ by nation:

• Scotland and Wales: you can register from age 14 if you are a British or Irish citizen, or if you have permission to enter or stay in the UK, Channel Islands or Isle of Man, or do not need permission. That covers most people on a visa.
• England and Northern Ireland: you can register from age 16 if you are a British or Irish citizen, a Commonwealth citizen (including Cyprus and Malta), a citizen of Denmark, Luxembourg, Poland, Portugal or Spain, or a citizen of another European Union country who on or before 31 December 2020 had permission to enter or stay, or did not need it, and has kept that without a break.

Check your own position on GOV.UK. See also our voting rights guide.

Step 2: Open a Bank Account

If you have not already, open a UK bank account. See our bank account guide. Having an account in your name at a fixed address contributes to your credit file. Set up direct debits for bills from this account.

Step 3: Get a Credit Builder Card

Credit builder cards are specifically designed for people with no credit history. They typically offer:

• Lower credit limits than a mainstream card
• Higher interest rates than a mainstream card
• Reporting of your account and payments to credit reference agencies

Limits, rates and which agencies are reported to are set by each card issuer and appear in its published terms, so read those rather than working from a general figure. Paying the full balance each month means no interest is charged, and the payment record still goes on your file.

Step 4: Pay All Bills on Time

Payments made and payments missed are recorded on your credit file. Direct debits are one way to keep the record clean, for things like:

• Rent (if your landlord reports to a credit agency)
• Council tax
• Utility bills (gas, electricity, water)
• Phone contract
• Broadband

Missed payments are recorded and stay on the file for a period set by the credit reference agency. How much weight any lender gives them is the lender's own scoring, not a published rule.

Step 5: Check Your Credit Report

The UK has three main credit reference agencies: Experian, Equifax and TransUnion. Each holds its own file on you, and they do not always match, so it is worth looking at all three.

Data protection law gives you the right to ask any organisation, including a credit reference agency, for a copy of the personal data it holds about you, and it must respond free of charge and normally within one month. Each agency also offers its own free and paid products for viewing your file. If you find something incorrect, you can ask the agency to correct it, and you can complain to the Information Commissioner's Office if it does not.

Common Mistakes to Avoid

• Applying for too much credit at once. Each application leaves a mark on your file. Multiple applications in a short period can lower your score.
• Not being on the electoral roll. This is the easiest win and many people miss it.
• Missing payments. Even one missed payment can significantly hurt your score.
• Carrying a balance on credit cards. Pay in full each month to avoid interest and show responsible use.
• Ignoring your credit report. Check it regularly and dispute any errors.

Order of Steps

Rowan cannot tell you how long any of this will take, because no credit reference agency or lender publishes a timetable and the scoring models are their own. What can be set out is the order the steps depend on each other:

• A UK bank account and a fixed address come first, because almost everything else is opened from them.
• Registering on the electoral register, if you are entitled to, puts your name and address on the record lenders are permitted to check.
• Accounts and payments then build the file over time: each account opened, each payment made, each payment missed.
• Checking your file at all three agencies lets you see what lenders see and correct anything wrong.

Next Steps

The published points on this page are the ones worth acting on: check whether you can register to vote in the nation you live in, and use your data protection right to see what each of the three credit reference agencies holds about you. Everything else — limits, rates, scoring — is set by individual firms and published by them.

Related guides:

• Opening a Bank Account on a UK Visa
• UK Phone Contract for Visa Holders
• Buying Property as a Visa Holder
• Cost of Living in the UK

You may also find our Immigration Health Surcharge and UK Visa Fees: Complete Guide helpful.

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