Your credit score can affect your ability to borrow money and buy goods on hire purchase, whether that’s a loan, mortgage or even a mobile phone. It can also have an impact on your home insurance, especially if you need to pay monthly. This article explains how, and what you can check.

ClearScore is a credit broker, not a lender.

What is a credit score?

Your credit report is a record of how you've managed credit and bills. Credit reference agencies use it to calculate a credit score. Lenders look at your report, and use their own criteria, to judge how likely you are to repay on time and in full.

If you have a good credit score, you’re considered a low-risk candidate and have a history of making repayments on time and essentially managing your money well. This means you’re more likely to be approved for a loan and be offered more favourable interest rates.

A lower score often reflects missed or late payments in the past. It can make it harder to be accepted for credit, and if you are accepted, you may be offered a higher interest rate.

How do I check my credit score?

In the UK, there are three main credit rating agencies (CRAs) that collect and record credit data: Equifax, Experian, TransUnion (formerly known as Callcredit). These independent companies gather information from lenders, public records, and utility providers to build your financial profile, though they each use distinct proprietary systems to assess your risk.

Each agency uses its own scale. Experian scores run from 0 to 1,250 (since November 2025) and Equifax scores from 0 to 1,000. TransUnion is moving from 0–710 to 0–999 between late September 2026 and June 2027, so you may see either scale for now. Not every lender shares data with all three agencies, so your report and score can differ between them.

To stay on top of your credit record, you can check with each of the CRAs. You can also check your Equifax credit score and report for free with ClearScore.

Improving a credit score can take time. Read about ways to improve your credit score.

How does my credit score affect home insurance?

Insurers can use information from credit reference agencies when deciding whether to offer cover, how much to charge, and whether you can pay by monthly instalments (and at what cost). So a poor credit history may affect the price you're quoted, and some providers may not offer monthly payments to every applicant. Eligibility and acceptance are decided by each insurer and depend on its own criteria and checks. Checking your eligibility does not guarantee that you'll be accepted.

Paying monthly usually means using credit to spread the cost of your policy. The credit may come from the insurer itself, or from a separate finance provider arranged by the insurer or a broker. Some providers charge interest and some offer monthly payments at 0% APR. In its premium finance market study (final report, February 2026), the FCA found that in 2023, 38% of home insurance policies sold with monthly payments were interest-free. Where interest was charged, weighted average APRs among the firms it sampled were 16.5% for insurers, 23.5% for intermediary lenders and 29.4% for intermediary brokers (reflecting price changes up to 1 January 2026). Credit information can also be used for other types of insurance.

Does getting a home insurance quote affect my credit score?

Getting a quote doesn't affect your credit score. Insurers may run a soft search when you ask for a quote, to check your identity and assess the risk. Other lenders can't see soft searches. Only you and the credit reference agency can.

If you buy a policy and choose to pay by instalments, the provider will usually run a hard search. Other lenders can see hard searches. Most stay on your credit report for 12 months, and several in a short period can lower your score for around six months. Lenders may take this into account when you apply for credit.

What can I do if I need home insurance and have bad credit?

Each insurer sets its own criteria for offering cover, and some may ask about County Court Judgments (CCJs) or bankruptcy. A poor credit history may affect which insurers offer you cover, the price, and whether monthly payments are available. Eligibility and acceptance are decided by each insurer and depend on its own criteria and checks. Checking your eligibility does not guarantee that you'll be accepted.

You can check your report at each of the three credit reference agencies. If something is wrong, even a small error in your name or address, raise it with the agency. If the error came from a lender or another organisation, you may need to contact them too.

Your report may also show a financial association with someone you've had joint credit, a joint account or a joint CCJ with. Lenders can look at that person's credit history too. If you no longer have any joint finances with them, for example after a separation, you can ask each credit reference agency to add a notice of disassociation.

What affects the cost of home insurance?

According to the ABI's household insurance premium tracker, the average premium paid for combined buildings and contents cover was £383 in April–June 2026, £9 lower than a year earlier (published 3 August 2026). The averages were £309 for buildings-only cover and £118 for contents-only cover. These are market averages based on the prices customers paid, and individual premiums vary. The FCA found that in 2024, 41% of home insurance customers who paid by instalments did so because they couldn't afford a single annual payment.

Things that can affect what you pay include:

• How you pay. Where interest is charged on monthly payments, paying annually costs less overall. Some insurers offer monthly payments at 0% APR, so it's worth checking the total amount payable and the APR before you choose.

• The type of cover. If you rent, buildings insurance is usually your landlord's responsibility, so tenants usually only look at contents cover (your tenancy agreement may say more). If you have a mortgage, your lender will usually require you to have buildings insurance.

• How much cover you choose. Overestimating can mean paying for cover you don't need, and underestimating can mean a claim isn't paid in full. Buildings cover is usually based on the cost of rebuilding your home, which is often different from its market value.

• Comparing quotes. Comparing quotes from several insurers shows the range of prices and cover available. Since 1 January 2022, FCA rules have meant your renewal price can't be higher than the price a new customer would pay for the equivalent policy through the same channel.

Related: how your credit history can affect car insurance.