How to check a credit score in the UK

Checking a UK credit score is pretty simple - whether it is for yourself, your business or a business that you are considering doing business with. 

 

Whatever the reason or motive is to check for credit, it’s a pretty important metric for finances. A credit score is considered a financial snapshot, with influence over the way banks, service providers, lenders and other companies decide how reliable you are.

 

In this article, we will explain how to check for a credit score in the UK and what you can expect when you partner with us here at Creditserve to provide this service.

 

 

Checking your UK credit score

Let’s talk first about how to check your own credit score. There are a handful of different credit reference agencies in the UK that you can use to check for, including checking you credit score in the UK, and each uses a slightly different scoring system based on similar criteria. The one you decide to use will be a personal preference, and there shouldn’t be too much difference in your scores between each of them.

 

It is free to check your credit score in the UK. All you need to do is register with your chosen credit reference agency and input some basic information. You’ll then be given a credit score. This is usually displayed as a number and generally, the higher the number means the better the credit score. 

 

The score is usually based on a range of factors but in a nutshell, agencies are looking to see that whatever credit you have is being handled responsibly. This means that it’s being paid on time, paying off more than the minimum, not being near the credit limit all the time and that it is paid off completely every now and then. If you have zero borrowing, you may actually have a low credit score. This is because credit agencies cannot see how you manage your debt. 

 

Checking your business’s UK credit record 

If you are a business owner, it is important to check your business’s credit record, too. A low business score can make doing business and securing finance a lot trickier. If a low credit score is something that your business is suffering from, you’ll want to know so that you can take the appropriate steps to improve it. 

And importantly, just as you would carry out a UK credit record check on a company you were looking to do business with, other businesses, such as suppliers and partners, will likely be doing the same before agreeing to credit terms with you. Therefore, a low credit score can quickly become a real hindrance. 

Improving your credit score

Improving your credit score is a straightforward process that focuses on demonstrating responsible financial behaviour. The easiest and most impactful step is to ensure all your bills and credit repayments are made on time, every time. Setting up direct debits can help you avoid any accidental late payments. 

It's also wise to check your credit report regularly for any errors and have them corrected because an incorrect or missed payment can unfairly lower your score. Also, aim to keep your credit utilisation as low as possible by using only a small percentage of your available credit limit, and try to pay off your credit card balance in full each month. 

Finally, while it might seem counterintuitive, you need to show you can handle credit responsibly, so having some credit accounts, even if you don't use them much, can be beneficial for building a positive history for lenders to be able to look through should you need credit for your business in the future. 

Although potentially a little more complex, a company credit score is used in the same way as a personal credit score. When you apply for a business credit card or business loan, you’ll have your company's credit score checked in order to see that your business is eligible. As mentioned earlier, the higher the score, the better, and the more chances you’ll have of getting the best interest rates and loan terms. 

Again, there are a number of credit reference agencies that you can sign up for in order to check your business’s credit score in the UK, and this is usually a free service. Your business’s credit score is based upon: 

• The type of accounts you file
• Your payment performance
• Any County Court Judgments (CCJs) or insolvency proceedings 

Essentially, your business’s credit score reflects the financial health of your business.

 

 

How to check a business’s credit score in the UK 

So, how do you carry out a credit record check in the UK on a company that your business currently works with or plans to work with in the future? In this instance, you’ll need to enlist the help of a specialist credit reporting agency, such as us here at Creditserve.

Our UK credit check packages allow you to run credit checks on any of your customers or suppliers, allowing you to assess the risk and make informed decisions. Simply purchase your chosen UK credit check package, depending on how often you need to check for credit, and provide us with the basic information required. 

Our system will pull back the following information for you to review:

• Credit limits
• Risk scores
• Company incorporation details
• Individual directors, including other directorships
• Shareholders and their shareholdings
• Mortgages and charges
• Five years of financial data where available
• Legal notices
• CCJs

To get a better idea of what to expect from a company UK credit check, view our sample report. Be sure to get in touch with our friendly team of experts today for more information on our credit score checks in the UK and internationally. Contact us on 01992 414222.