What impacts your credit score? Key factors explained

Making sense of your credit score might feel a little overwhelming. And then there’s the task of improving your credit health. But don’t worry – we’re here to guide you through the process.

Don’t forget, no matter what your score is right now, there are steps you can take to get it moving in the right direction.

We present clear paths to progress, identifying actions which can raise your score, build positive habits and arm you with the know-how to keep them up. Check your file

Does a financial association impact my credit score?

A financial association on your credit report displays only the associate’s name and not their credit report data. This means the financial association itself won’t have a direct impact on your credit score.

However, when a prospective lender receives an application from you, they may choose to search your financial associate’s details along with your own. Because of this, the lender may base their decision on both your credit reports rather than just yours.

We recommend keeping your financial association information up to date to make sure that anyone listed doesn’t affect your credit applications, and vice versa. If you have an association which is no longer current, details on how to remove it can be found in How do I remove a financial association?

What impact does being on the Electoral Roll have on my credit score?

Put simply, it’s a good thing. Being on the Electoral Roll at your current address will positively affect your credit score, and if you’re not, it won’t. Here’s why:

1. Electoral Roll information acts as the index for credit reports. If a prospective lender can’t find an Electoral Roll listing for you, it will be difficult for them to find your credit account information and properly assess your application.

2. An Electoral Roll listing shows stability – the longer you’ve been registered, the less risky you’ll seem.

3. Lenders may decline your credit application if they can’t find an Electoral Roll listing for you.

Having all three main credit reference agencies showing your Electoral Roll listing is important for a healthy credit report. If you expected to see an Electoral Roll entry on your credit report but don’t, check out this guide for the most common reasons.

How do hard and soft searches affect my credit score?

There are two types of credit search, and only one can affect your score.

Hard search

This is when a lender performs a full credit check on your details as part of a credit application. Too many of these in a short space of time might look like you’re desperate for credit, or that you’ve recently taken out a lot of new credit. This could negatively affect your credit score.

Soft search

These could be checks made by a landlord or employer, or when you get a quote through a comparison website. They may also relate to when you check your own credit report, or when existing lenders check your current status. The good news – they have no impact on your score.