What to do about a LOW credit score

What to do about a low credit score

If you have a poor credit score, it is likely that you’ll need to address a number of issues. The most likely are:

  • Missed payments
  • County Court Judgments (CCJs) and insolvencies

Lenders may reject your loan application if you have recent missed payments, CCJs or have been insolvent.

If you don’t have any of these then your score is probably reasonable or even good. If this is you then you’ll want to thinking about things like high credit card balances and overdrafts. Check out our tips on how to turn an OK credit score to great.

How do missed payments and legal action affect my score?

Missing payments will have a negative effect on your credit score but it’s a sliding scale… a one-off missed payment may reduce your score a little, but won’t be as serious as having a default on your file. (A default is typically considered to be 6 missed payments in a row!)

While County Court Judgments send a score tumbling, nothing kills a credit score like being made bankrupt.

Missed payments

A missed payment is recorded at a Credit Reference Agency when you’ve not made a payment that is due under a credit agreement.

Read-up on dealing with missed payments and defaults.

County Court Judgments (CCJs)

These tips apply to England and Wales only.

It is rare for creditors to take people to court. For a case to have progressed, it’s likely the borrower reneged on many agreements to repay.

A CCJ will be on your credit file for six years. It will reduce your credit score significantly.

If you pay the CCJ within 30 days it will not show on your credit file.

About Adrian Davies

With a background in money advice, Adrian's been campaigning for fairer finance for 25 years.

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