How to build a credit score for immigrants in the UK

If you're moving to or have recently arrived in the UK, you’ll need a credit history to get things like phone contracts, credit cards, and loans. But if you’re new to the UK, you won’t have a history of borrowing in this country. So how does that work? Does your history of credit travel with you from other places you’ve lived, and if not, how can you build it up? Read on for tips and advice about credit scores for immigrants in the UK

Lenders in the UK check your credit report to see how you’ve managed money in the past. Your credit score is then calculated from your report by credit reference agencies (CRAs) to give you an idea of how lenders may view you. 

The three main CRAs in the UK are Experian, Equifax, and TransUnion. They collect information about your borrowing to see how you managed repayments, and how responsible you have been with borrowing money before. Generally, the better your credit history, the higher your credit score will be.

You can read more about what credit scores are and the difference between the three CRAs in the UK here.

Do immigrants have credit scores?

Yes, but it’s likely it won’t be very high. As a new arrival to the UK, you won’t have a history of borrowing money in this country. And because you can’t bring your credit history from your previous country with you, you’ll be starting from scratch.

This means that even if your financial history in the country you are moving from is amazing, you’re likely to still be seen as “high risk” by lenders in the UK. So if you plan to get a phone contract, take out a loan or a mortgage, or use a credit card, you’ll have to start working on your score. And the sooner you start the better. Read on for our guide on how to build your credit score if you’re an immigrant.

How to increase credit scores for new immigrants in the UK

It can be quite scary to tackle, especially if you are just starting out your new life in the UK but with some time, patience and effort, you can grow it. Begin your journey by following these steps.

Get started with Loqbox!

One of the best ways to build your credit score as an immigrant to the UK is to get started with Loqbox. As a member, you can do things like growing your score while you save towards your money goals or make paying rent for your new UK address count towards your Experian credit history.

Improvements to your credit score are not guaranteed.

We contact the three main CRAs in the UK to report your responsible payments and money management, which should help to boost your score. By combining the above tips with a Loqbox membership, you could start to see it go up in no time.

Find a long-term UK address as soon as possible

Lenders like to see stability, and one of the best ways you can show that is to find yourself long-term accommodation in the UK and try not to move too often. Having one fixed address in the UK will improve your proof of identity and make you seem less risky to lenders.

Set up and pay your utility bills in your name

Once you’re in your long-term address, make sure you set up your utility bills in your name. Bills like council tax, water, gas, electricity, and landlines (remember those?!) can help to  build your credit history. You do have to make sure that you pay them on time, of course. But if you can show you are responsible by paying bills, it could help your credit history.To help you pay your bills on time, you might want to set up automatic payments.

Something else to watch out for is “bills included” rental agreements. Landlords will sometimes offer rent that includes bills, so you just pay one amount each month. While this can be tempting — because of benefits like knowing exactly how much to budget for each month and not having to think about organising different payments — it won’t give you an extra chance to help your credit history.

Open a bank account 

It’s not always easy to open a bank account when you first move to the UK, especially if you don’t have an address yet. If you’ve already followed the first step in this guide though, you should have that covered. Make sure your wages go straight into your bank account, and pay your bills in full and on time. This will help to show stability and responsible activity.

Take out a mobile phone contract 

If you can, get a mobile phone contract. They are considered to be credit as you borrow the phone usage costs from your provider and pay them back with your monthly bills. So you can build your score with a phone contract, as long as you make sure to pay your bills on time every month.

Get a credit card

You may only be able to get a high-interest credit card to begin with, but if you’re very careful with it and make your repayments, it can really help to grow your score as an immigrant to the UK. Of course, there is a risk of damaging your history if you don’t use it properly, so make sure you’re comfortable with your finances before you take this step.

It is also important that you don’t apply for lots of credit in a short space of time. If you apply for a credit card and you’re declined, repeatedly trying to get accepted for different cards will harm your report. You can find out more about how credit cards affect your credit score here.

Get on the electoral roll (if you can)

The electoral roll is a list of all the people in the UK who are registered to vote. As an immigrant, you may not be eligible to vote in the UK but it is definitely worth checking. Lenders check if you’re on the electoral roll as part of your proof of identity and to check your address.  It makes being registered one of the easiest ways to grow your credit score. 

If you aren’t eligible to vote in the UK, it is possible to add a notice of correction to your credit report by contacting the three main CRAs. A notice of correction is a note that’s put onto your report which informs lenders why something is or isn’t showing on your financial history. In this case, you could explain why you’re not on the electoral roll.

Check your credit score

You’re doing all this work to build your score, so make sure you check it regularly to see how it’s going. Seeing the increase can help your motivation, so it's worth it just for that, but there are other reasons to do it too. If there is a drop in your score, there could be a mistake which is dragging your score down and might just need a simple fix.

The good news is that you can check your credit score with all three CRAs in the UK for free. To learn more about checking your score, head over to 'Your credit score explained'.

Other things to know about your credit score as a new UK immigrant

What credit score do you start with as an immigrant in the UK?

Unfortunately your credit score from your native country doesn’t travel with you when you’re an immigrant in the UK. It will be calculated as if you are starting fresh, but that doesn’t mean it will be zero. It’s not possible to know what your credit score will be to begin with, but it is likely to be a low number.

It is possible to get a copy of your credit score in your native country so that you can send it to lenders when you make applications in the UK. It won’t guarantee that they will offer you credit, but it could help.

How long does it take for immigrants to build up a good credit score in the UK?

It’s hard to say exactly how long it takes, but the sooner you start the better. It can take a few weeks for changes to appear on your report, between three to six months for your score to start growing, and sometimes years for it to get really good. Bad things like defaults can stay on your report for six years so it’s super important to avoid missed payments.

Find out more about how missed payments affect your credit score here.

Do your debts travel with you abroad?

Yes. Seems unfair, right? Your good credit score can’t come with you as an immigrant, but debts from your native country can. But of course, companies are going to want to get their money back. Make sure you leave a forwarding address and inform anywhere you owe money that you are moving abroad. Being responsible and paying off your debts will look better on your report.

What can you do before you move to the UK?

There isn’t a lot you can do before you move to help your credit score unfortunately. You could open an account with an international bank (which has UK branches) before you leave so you’re more connected, but this isn’t always as simple as it should be. It’s easier to set up a bank account when you have a UK address, so you should make finding somewhere to live your priority.