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. These include:

  • 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.

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. For example, 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 usually registered when you’ve missed several payments in a row.

Missed payments

Missed payments are recorded at a Credit Reference Agency when you’ve not made a payment due under a credit agreement.

Read-up on dealing with missed payments and defaults.

County Court Judgments (CCJs)

This information applies 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.

Importantly, a CCJ will be on your credit file for six years. As a result, it will reduce your credit score significantly.

Tip: 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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