TL;DR
Key points
Credit history shows how you have managed financial commitments in the past. Lenders assess payment punctuality, credit utilisation, length of credit history and entries such as missed payments, defaults or CCJs.
Credit score is only one part of the assessment. In a mortgage application, the lender usually also checks the credit report, income, commitments, deposit, employment type and overall financial position.
Good credit history can increase the number of available products and improve mortgage terms. Missed payments, defaults, CCJs or payday loans can reduce options and affect the lender decision.
What does the lender check before making a decision?
Payment history
The lender checks whether credit cards, loans and other commitments have been paid on time.
Current debt
Credit card limits, credit utilisation and monthly commitments all matter.
Financial stability
Address history, length of credit history and electoral roll registration can affect lender assessment.
Negative entries
CCJs, defaults, missed payments or payday loans can reduce the number of available lenders.
What is credit history in the UK?
Credit history shows how you have managed financial commitments in the past. Lenders check payment punctuality, credit utilisation, length of credit history, number of credit searches and entries such as missed payments, defaults or CCJs.
Credit history is not the same as affordability. You can have high income and poor credit history, or perfect credit history and insufficient affordability. The lender assesses both separately.
A credit report may include:
- active loans and credit cards
- payment history
- credit limit utilisation
- information about missed payments
- CCJs and defaults
- address details
- electoral roll
- hard searches and soft searches
What is credit score?
Credit score is a numerical assessment of your credit history prepared by credit reference agencies.
The main agencies in the UK are Experian, Equifax and TransUnion. Lenders often use their own scoring systems too.
This means a high credit score does not guarantee a mortgage, but good credit history usually helps access better offers.
What can lower a credit score?
- late or missed payments
- high credit card utilisation
- frequent credit applications
- payday loans
- CCJs or defaults
- no credit history
- not being on the electoral roll
- exceeded limits
- many hard searches
Hard search vs soft search
Soft search
A soft search does not affect scoring and is usually used for initial calculations or eligibility checks.
Hard search
A hard search appears during a full credit application and may temporarily lower the score, especially if there are many searches in a short time.
How can you improve credit history?
- pay commitments on time
- keep credit card utilisation low
- avoid many credit applications
- check address details are correct
- register on the electoral roll if you are eligible
- monitor your credit report
- avoid payday loans
- build a stable financial history
Eligibility depends on your age, nationality, immigration status and where you live in the UK. Check the Electoral Commission’s guidance for your UK nation.
If an entry looks wrong, contact the credit reference agency and the lender or organisation that supplied it. Explain what is inaccurate and provide supporting evidence.
What is included in a credit report?
Electoral Roll
Confirms your address and helps the lender verify your identity.
Credit Cards
The lender can see card limits, utilisation and payment history.
Loans
Loans and finance agreements show the current level of borrowing.
Missed Payments
Late payments can worsen the lender risk assessment.
Defaults
A default stays on the report for a set period and can affect product availability.
CCJ
A County Court Judgment is one of the key entries assessed by lenders during a mortgage application.
Credit report
How to check credit history in the UK?
There are three main credit reference agencies in the UK:
- Experian
- Equifax
- TransUnion
Different lenders may use different data sources, so it is worth checking a report covering all three agencies, not only one.
You can also request a free statutory credit report directly from Experian, Equifax and TransUnion. These are separate reports; you do not need a paid subscription to obtain them. See MoneyHelper’s guide to checking your credit report for free.
CheckMyFile (recommended)
This is one of the most comprehensive tools available in the UK. The report combines data from Experian, Equifax and TransUnion, making it easier to spot errors, outdated entries or differences between agencies.
Reviewing your credit report can help you prepare for a broker conversation or mortgage application. Free statutory reports are also available from the credit reference agencies.
CheckMyFile offers a 7-day trial, after which a £14.99 monthly subscription applies. Terms and fees may change, so check current information directly with the provider before registering. The subscription can be cancelled online.
Experian
One of the largest credit reference agencies in the UK. Some lenders use Experian data when assessing mortgage and credit applications.
Equifax
A major credit agency used by many lenders. The report may contain information that differs from data shown by other agencies.
TransUnion
The third main UK credit reference agency. Some banks and financial institutions use TransUnion data when assessing credit risk.
Because not all lenders use the same agency, checking a report covering Experian, Equifax and TransUnion gives a fuller view of your credit history before a mortgage application.
Credit history and mortgage
Good credit history can increase the number of available lenders and improve available rates.
At the same time, people with the issues below may still obtain a mortgage in many cases with the right lender. If the issue is more serious, a separate review for poor credit history may also help:
- defaults
- missed payments
- CCJ
- low credit score
- short credit history
Each case is assessed individually, so before applying it is worth checking the report and speaking to a broker. This especially applies to first-time buyers and self-employed clients, because for First Time Buyer and self-employment the lender may assess additional profile details.
Read also
FAQ
Frequently asked questions
Does a low credit score mean an automatic mortgage decline?
No. The score shown by a credit reference agency is an indication, not the lender’s mortgage decision. Lenders use their own criteria and examine the underlying payment history alongside income, commitments and deposit, so the details of any negative entries matter more than a score alone.
Does checking my own report lower my credit score?
No. Checking your own credit report is treated as a soft search and should not affect your credit score.
Do payday loans affect a mortgage?
They can. A lender may see payday borrowing as a sign of pressure on your budget, even where repayments were made on time. How recently and how often you borrowed, whether anything remains outstanding and your current finances can affect the assessment; there is no single acceptance rule across all mortgage lenders.
How long are missed payments visible?
A recorded late or missed payment generally stays on a credit report for six years. Its effect on a mortgage application depends on factors such as how recent it is, whether it was isolated and your subsequent payment record. A default is a separate entry with its own default date; if a payment entry is wrong, ask the lender and credit reference agency to correct it.
Is having no credit history a problem?
Not necessarily, but a thin credit file gives a lender less evidence of how you manage repayments. It can help to check that your address and existing accounts are recorded correctly and to maintain reliable payments on commitments you already have. You do not need to take on unnecessary debt just to build a score; lenders also assess income, deposit and their own eligibility criteria.
Is it worth checking a credit report before applying?
Yes. Checking your report helps you identify errors and prepare for a mortgage application. Checking alone does not improve your score; correcting inaccurate information and managing repayments may help.
Will closing a credit card improve my credit score?
Not automatically. Closing a card reduces your available credit, so an unchanged balance on other cards can represent a higher percentage of your remaining limits. Keeping a long-established, well-managed account may help your credit profile, but fees and the risk of overspending also matter; do not keep borrowing simply to chase a score.
How long does a CCJ stay on a credit report?
In England and Wales, a CCJ normally stays on your credit report for six years from the judgment date. If you pay it in full within one month, you can ask the court to remove it from the register, providing proof of payment. Payment after one month can have it marked as satisfied, but it normally remains for the six-year period.
How long does a default stay on a credit report?
A default normally stays on your credit report for six years from the default date, even if you repay the debt before then. Paying it can update the entry to show that it has been settled, but does not normally remove an accurate default early. Check that the date, balance and repayment status are correct before applying for a mortgage.