In the United Kingdom, your credit rating like in most other places determines the amount of money you can borrow for a mortgage or refinancing. If you have a bad credit report, your chances of getting a loan in the UK are slim. The UK uses Equifax, Experian and Transunion to calculate credit scores. Like in the US, you can log on to their websites to take a look at your credit report. The report has everything in it that lenders look at before they agree to lend you money.

In the UK, your payment history accounts for 35% of your score, followed by the amounts you owe, the length of your credit history, new credit that you have and the types of credit that you use. If your credit rating is high, it means that you will get loans faster, credit decisions in your favor are made faster, there is more credit available to you and interest rates will be much lower because of your good credit.

If you do have paid credit, as in the US is it advised that you start paying your bills on time, because the longer you pay them on time, the better your score will become. Also, keep your credit account balances low, and always pay more than the minimum amount due each month.

Other UK tips to raise your credit score include registering to vote, space out your applications for credit, dont move before you apply, and prove that you have stability by owning a home, not be self-employed and having a fixed land phone number rather than a mobile phone number.