How To Improve Credit Score As A Student - HSBC UK (2024)

As a student, you may not have much of a credit history, but that doesn’t mean you can’t start building your credit score now.

Here, you’ll find ways to build your credit score and develop good financial habits.

What is a credit score?

If you’re applying for finance, lenders will calculate a credit score to see what products and rates you qualify for and what kind of borrower you are. Your credit score can change throughout your life, depending on your financial history and circumstances.

There are things that can positively and negatively affect your credit score. For example, missed loan payments could have a negative impact on your credit score, while being on the electoral roll can have a positive impact.

People with a higher credit score are often seen to be a lower risk to lend to, so looking after your credit score is important.

A student loan doesn’t affect your credit score. It also doesn’t appear on your credit report. If you want to apply for finance in the future, the lender will only know you have a student loan if they ask on the application.

Other types of lending, such as a student credit card or student overdraft will appear on your credit report.

Does a student overdraft affect your credit score?

A student overdraft will appear on your credit report, but it won’t affect your credit score if you’re careful with it.

If you use your overdraft, it’s important to pay this back in a timely manner and avoid going over your arranged overdraft limit.

Going over your arranged overdraft limit on a regular basis can have a negative impact on your credit score. It can signal to lenders you’re struggling to manage your money.

If you don’t use your student overdraft, it will still appear on your credit report, but will show a balance of 0.

How to build a good credit score as a student

  1. Join the electoral roll

  2. Pay your bills on time

  3. Don't keep applying for credit

  4. Consider taking out a student credit card

  5. Check your credit report

1. Join the electoral roll

Joining the electoral roll, if you’ve moved into student accommodation or a shared house, is an easy way to boost your credit score. You can do this online, and you may even be able to register two places – your address during term time and your home address.

2. Pay your bills on time

One way to help build your credit rating is to pay your bills on time. Late payments could have a negative impact on your credit score.

Direct Debits and standing orders can be a useful way to make sure your payments are made on time. You can schedule them so the money is moved without you needing to do anything.

3. Don't keep applying for credit

If you get rejected for finance it may seem tempting to apply again or try another provider, but you should resist doing this. Making multiple applications will be recorded on your credit file and can affect your credit score.

Explore: What to do if you’ve been declined for lending

If you’re wanting to see what rates and types of finance you’d be eligible for, use eligibility sites that do a soft credit check. A soft credit check won’t be seen by other lenders and can let you see what you’re more likely to be approved for.

4. Consider taking out a student credit card

Credit cards can be a useful way to start building up your credit score. You may find some banks offer a student credit card, which often has a lower limit. If you’re sure you’ll be able to meet your repayments on what you spend, a student credit card could be worth considering. Remember, credit cards are not free money and should be used responsibly.

5. Check your credit report

You can check your credit report at one of the 3 major UK credit reference agencies (TransUnion, Experian and Equifax) to see if all your details are correct. It’s important to query anything on your credit file that you don’t agree with – and correct any mistakes – as these can negatively impact your credit score.

Checking your own credit report won’t affect your credit rating or credit score.

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How To Improve Credit Score As A Student - HSBC UK (2024)

FAQs

How To Improve Credit Score As A Student - HSBC UK? ›

Pay your bills in full and on time

For many students, uni is the first time you have to manage paying rent and bills. Your credit history and score will reflect how responsible you are with your bills, so make sure to start with the right habit by paying your utility bills, rent, and phone bills, in full and on time.

How to increase my credit score as an international student in UK? ›

Pay your bills in full and on time

For many students, uni is the first time you have to manage paying rent and bills. Your credit history and score will reflect how responsible you are with your bills, so make sure to start with the right habit by paying your utility bills, rent, and phone bills, in full and on time.

How can a student increase their credit score? ›

There are multiple ways to start building credit as a student, such as becoming an authorized user, opening a student credit card or getting a cosigner. It is important to spend responsibly and maintain a solid payment history in order to keep a good credit score.

Is an HSBC student credit card worth it? ›

Pros of the HSBC Student credit card

The card combines a relatively low APR with a sensible credit limit to help foster good habits for first-time credit users. Purchases are interest-free for 56 days if you pay the balance off in full on time each month. No annual fee.

How to increase credit score quickly in the UK? ›

Boost your credit score
  1. Spend regularly on a credit card (but repay in full on time) ...
  2. Packing lots of unused plastic? ...
  3. Make sure you don't 'max out' ...
  4. Make (much) more than minimum payments. ...
  5. Monitor for mistakes you didn't make. ...
  6. Ensure you're on the electoral roll. ...
  7. Avoid using ATMs with your credit card.

How do I increase my credit score as an international student? ›

How to build credit as an international student
  1. Open a bank account. ...
  2. Make sure your rent is reported. ...
  3. Think about getting a store card. ...
  4. Open a secured credit card. ...
  5. Consider a credit-builder loan. ...
  6. Get an unsecured credit card.

Do international students in UK have credit score? ›

As a new arrival in the UK, you're not likely to have a credit score, and you can't transfer over your credit history from abroad. ¹ This means that there is a chance that the bank will see you as high risk, and reject your application.

What's a good credit score for a student in the UK? ›

TransUnion (formerly Callcredit) is the UK's second largest CRA, and has scores ranging from 0-710. A credit score of 566-603 is considered fair. A credit score of 604-627 is good. A score of 628-710 is considered excellent (reference: https://www.finder.com/uk/transunion).

Why is my credit score so low as a student? ›

That often goes hand-in-hand with increased borrowing, whether via a student loan, overdraft, or credit card. While not necessarily a bad thing, it's vital to know how this impacts your credit score, and what you can do now for a healthier financial future post-uni.

How long does it take for a student to build credit? ›

Paying on time every month, keeping your credit utilization low and having a mix of different credit can help build your scores over time. If you have little or no credit history, it may take three to six months of credit activity to get your first credit scores.

Is HSBC good for students? ›

Our Student Bank Account helps you boss your budget while you're studying, so you can enjoy student life to the full. With no monthly account fee. To apply, you'll need to be 18+ and have a confirmed place on a qualifying course at a UK university or college. T&Cs and other eligibility criteria apply.

Is HSBC a good bank for international students in UK? ›

HSBC Bank Account for International Students

Do keep in mind that this account doesn't give you access to any credit facilities, including an overdraft or loans. If you're already an HSBC customer, you can even set up this account before you arrive in the UK. If you're a new customer, you can open an account in the UK.

How to get 100 HSBC student account? ›

Page 1
  1. £100 Cash HSBC UK Student. ...
  2. Terms and Conditions.
  3. New customers are eligible for this offer if you meet the. ...
  4. • apply for, and open, one HSBC UK Student Bank Account on or after 16 June.
  5. 2022 and before the offer closes or is withdrawn.
  6. • are a student, who is 18+ and have been a resident in the UK, Channel Islands or.

How to get 999 credit score UK? ›

Build a credit history
  1. Open and manage a current account responsibly, sticking to any agreed overdraft limit.
  2. Pay your bills on time; consider using Direct Debits to avoid missed payments.
  3. You could apply for a credit builder credit card and pay it off in full each month.
Jan 2, 2024

How do I fix my bad credit score UK? ›

Here are some simple steps you can take to get it back on track:
  1. Make payments on time and in full. ...
  2. Stay below your credit limit. ...
  3. Register to vote. ...
  4. Space out your credit applications. ...
  5. See if you could get an instant score boost.

How to get a 700 credit score in 30 days? ›

15 steps to improve your credit scores
  1. Dispute items on your credit report. ...
  2. Make all payments on time. ...
  3. Avoid unnecessary credit inquiries. ...
  4. Apply for a new credit card. ...
  5. Increase your credit card limit. ...
  6. Pay down your credit card balances. ...
  7. Consolidate credit card debt with a term loan. ...
  8. Become an authorized user.
Jan 18, 2024

How to build credit in the UK as a US citizen? ›

How do I build my credit score in the UK?
  1. Make sure you're on the electoral roll.
  2. Open a bank account.
  3. Go for small lines of credit.
  4. Manage your household bills well.
  5. Make your rent count too.

Does UK credit score affect US credit score? ›

Your credit score will not follow you to another country, but your financial situation, including your debt levels and income, will still play a pivotal role. Creditors cannot share your financial information abroad and different countries have different standards for assessing creditworthiness.

Can you have a credit score as an international student? ›

We have established that having a good credit score is important, but keep in mind that most international students who are non-US citizens will not have a credit score as they may have limited or no financial information to review in the US.

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