A simple admin task many Brits overlook could quietly be dragging down their credit rating – and it takes just minutes to fix.
With millions worrying about the state of their finances, a surge in online searches reveals growing confusion over how credit scores really work.
In the past month alone, searches for ‘does checking your credit score lower it’ have jumped by 3,700%, while ‘how to increase credit score quickly’ is up 2,550%.
Official figures underline the problem. Data from the Office for National Statistics shows 26% of UK adults lack confidence in managing their money, with one in eight judged to have very low financial capability.
Yet one of the easiest ways to improve how lenders view you has nothing to do with debt levels or repayments.
Charlie Evans, personal finance expert at Compare the Market, says failing to register on the electoral roll can make borrowers appear riskier – even if they have never missed a payment.
He said: “Lenders use the electoral register to verify identity. If you are not registered, it could make you appear as a higher risk. Check to make sure you’re registered.”
Banks and credit card firms routinely cross-check applications against the electoral register to confirm who you are and where you live. If your name is missing – or your address is out of date – it can raise red flags.
The fix is straightforward. Registering to vote is free, can be done online and, once updated, may help improve your credit profile almost immediately.
The warning comes as many people wrongly assume credit scores are only affected by big financial decisions. In reality, everyday admin can play a surprisingly large role.
Financial Conduct Authority research shows fewer than two in five people who checked their credit report in 2024 said they understood it “very well”.
Yet credit affects almost everyone – around 84% of UK adults had some form of loan or borrowing in the year to May 2024.
Experts say being absent from the electoral roll can be particularly damaging for renters, younger people and those who move frequently – groups already more likely to struggle to access affordable credit.
With mortgage rates, car finance and even mobile phone contracts influenced by credit scores, ensuring you are correctly registered could be one of the quickest wins available.
As Mr Evans puts it: “Understanding what affects your credit score can help you spot issues early and protect your financial options, whether you’re thinking about a loan, a credit card or a bigger life purchase further down the line.”
Other issues that can effect a credit rating include:
* Having financial links to other people: “Sharing a joint account, mortgage or even a household bill can financially link you to another person. If they miss payments, it might affect your credit file too. So, be careful who you’re tied to financially and communicate with them.”
* Moving home frequently: “Regular changes of address can sometimes be interpreted as instability, particularly if records are not updated consistently. Try to keep consistency where you can.”
* Having little or no credit history: “Living with parents or avoiding credit altogether may save money in the short term, but a “thin” credit file can make it harder for lenders to assess you. Even small things like utilities and mobile phone contracts can start building a history.”
* Closing old, unused credit accounts: “While it can feel helpful to tidy up unused cards, some lenders like to see a longer credit history or available credit. Closing long-standing accounts may reduce the length of your credit history or available credit. This means, in some cases, keeping an account open, but unused, can be less damaging than closing it outright.”
* Using credit cards for cash withdrawals: “Cash advances are often viewed as higher-risk behaviour and could have a negative impact on your score. Avoid this as much as you can.”
* Always showing zero balances: “For active credit accounts, some scoring models may slightly penalise accounts that never show activity, as lenders cannot see evidence of ongoing credit use. While you shouldn’t use credit carelessly or unnecessarily, if you can make some regular payments and pay them off at the end of the month, you’re proving you’re a responsible borrower.”
* Acting as a guarantor: “If someone you support misses payments, it can directly affect your own credit record. Be very careful who you agree to act as a guarantor for and avoid it, if possible.”
* Unpaid fines or small charges: “Even minor unpaid parking fines or library charges can escalate and be recorded as missed payments if left unresolved. Keeping on top of even these small things proves financial responsibility.”
Mr Evans said: “Credit scores are often treated as mysterious or intimidating, but in reality they’re built from lots of small signals over time. Many people focus only on debt levels or missed payments, without realising that everyday admin, like updating your address or staying on the electoral roll, might also make a difference.”
