Credit files and credit scores

Your credit file is a factual record of how you have borrowed and repaid. Your credit score is one agency's opinion about that record - and no lender uses it directly.

What is actually on the file

Accounts and their balances, payment history month by month, defaults and arrears, court judgments, bankruptcies, the electoral roll, financial links to anyone you hold a joint account with, and a record of your applications. Most negative markers stay for around six years in most countries.

What genuinely improves it

• Pay on time, every time. Payment history is the single largest factor. One direct debit for the minimum, even if you pay more manually, prevents accidental misses.
• Keep utilisation low. Using a small share of your available limit looks better than running close to it. Raising a limit and not using it can help.
• Show a history. A file with no borrowing at all is hard to assess. A card used lightly and cleared monthly builds a positive record.
• Register to vote where that is part of the system, and keep your address details consistent.
• Space out applications. Several hard searches in a short period suggest financial stress.

What does not affect it

Your salary, your savings balance, your job title, checking your own file, and - in most systems - your debit card spending. Also note that a partner's poor credit only affects you if you are financially linked through a joint product.

Before a big application

Check your file three to six months before applying for a mortgage. Correct errors, close unused accounts you will never use again, avoid new credit, and keep your finances quiet and predictable. Lenders like boring.