Why is my credit score low if I don’t have any active debts?

There are a few reasons why your credit score may be lower than expected without any active credit commitments.

  • Previous credit accounts could have been poorly maintained which includes missed payments or even defaulted accounts.
  • Potentially a CCJ has been recorded against you for non-credit related circumstances such as parking fines or civil disputes.
  • Limited credit history: Your credit score is based on your credit history, which includes how your credit accounts have been managed, types of credit used, and credit utilisation (percentage of your available credit that you are using). if you have credit cards it is good practice for the running balance to be kept at less than 30% of the credit limit and to ensure more than the minimum payment is made on the account each month
  • Errors on your credit report: It is possible that creditors are recording things incorrectly against you. Common mistakes in reporting are accounts that do not belong to you or incorrect payment information.
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