Credit Scores: First-Time Homebuyer's Guide to Boosting Your Mortgage Eligibility

Part 1 of 3

This blog is for first-time homebuyers who want to understand and improve their credit score before applying for a mortgage, in part 1 we’ll cover:

• What credit scores are and why they matter?

• Who are the key credit reference agencies?

• What affects your credit score?

• Common myths versus the real facts

• Practical steps to improve your score today

Or, if you’d rather not wait book your free 30-minute consultation now.

1. What is a credit score & why does it matter?

Buying your first home is one of life’s biggest milestones and it’s one that depends heavily on your credit score. While you might think a deposit and a stable income are all that matters, mortgage lenders look closely at your credit history. Your score is essentially your financial report card, and it can determine how much you can borrow, the interest rate you’ll receive, and even whether your application is approved at all.

Even with a strong income and deposit, a poor score can hold you back. The good news is, you can take action to boost it.

2. Who are the key credit reference agencies?

In the UK, your credit score is managed and tracked by three main credit reference agencies (CRAs):

• Experian

• Equifax

• TransUnion

  
  

Each agency gathers information about your financial behaviour, including how you use credit, your repayment history, and any legal judgments against you. Mortgage lenders typically use one or more of these agencies when assessing your mortgage application.

Although each CRA uses its own scoring system and may hold slightly different data, the core elements of your credit profile are the same. That’s why it’s important to check your reports across all three, not just one, because an error on one could affect your application even if your other reports look clean.

You can view your credit report for free using trusted platforms like:

• ClearScore (uses Equifax)

• Credit Karma (uses TransUnion)

• Experian directly

  
  

Keeping an eye on all three CRAs to help you stay ahead of any surprises and give you time to fix errors or improve your score before applying for a mortgage.

3. What affects your credit score?

In the UK, your score is tracked by the CRAs and each uses a different scoring range, but they all look at similar factors:

• Payment history (have you paid bills on time?)

• Credit usage (are you maxing out cards?)

• Credit mix (cards, loans, etc.)

• Search history (how often do you apply for credit?)

• Public data (CCJs, defaults, bankruptcies)

  
  

 4. Myths vs Facts

Myth	Truth
“You need a perfect score”	Lenders usually accept “Good” or better.
“Checking my score hurts it”	False — it’s a soft search and doesn’t affect your score.
“Debt-free means high score”	Not always — lenders like to see you use and repay credit.
“Being on the electoral roll is enough”	It helps, but it’s just one factor.
“One missed payment won’t matter”	It can stay on your record for 6 years.

5. How to improve your credit score

If your credit score isn’t where you'd like it to be, don’t worry there are realistic steps you can take to boost it. The key is consistency, time, and knowing what really moves the needle. Even modest improvements can make a huge difference in the interest rate you're offered and the lenders willing to approve you.

Here’s how to get started even if your score isn’t perfect.

• Check your reports

  Look for mistakes across all three agencies (use ClearScore, Credit Karma, etc.)

  Dispute any errors.

• Register to Vote

  A quick win that helps confirm your identity to lenders.

• Use Credit Responsibly

  Get a low-limit credit-builder card

  Pay your bills and subscriptions on time

  Use rent-reporting tools like CreditLadder

• Keep credit card balances low

  Stay under 30% of your card limit. For example, spend no more than £300 if your limit is £1,000.

• Avoid new credit applications

  Multiple “hard searches” can lower your score. Use eligibility checkers instead.

• Don’t close old accounts

  A longer credit history improves your score. Keep old, fee-free accounts open and monitor for fraud.

• Separate old financial links

  If you had joint credit with someone, remove them by filing a notice of disassociation.

  
  

Quick Boost Checklist

Action	Why It Matters	Timeline
Register to vote	Identity verification	Immediate
Reduce credit card balances	Improves utilisation	1–2 months
Pay on time	Builds reliability	Ongoing
Avoid hard searches	Protects your score	3–6 months
Fix report errors	Can boost score	1–2 weeks

End of Part 1

Coming next week: What credit score you actually need to get a mortgage, how brokers can help, and how to protect your score over time.

Can’t wait? Then book your free 30-minute consultation with Home at Last. We’ll help you:

• Recommend trusted mortgage brokers

• Create a personal plan to strengthen your application

Let’s get you mortgage-ready.

Home at Last – helping first-time buyers feel confident, informed, and excited about homeownership.

Disclaimer: This blog post is for informational purposes only and should not be considered financial or legal advice.