If you don't have a credit history, learning how to build credit score from scratch can seem daunting. But while it does require some time and patience, it isn't too difficult if you know how to go about it.

What is a credit score and why build it?

In the UK, credit scores are calculated by agencies like Experian (0-1250), Equifax (0-1000), and TransUnion (0-850). Each agency uses its own scale, so a 'good' number on one might look different on another.

You'll need a credit history to get everything from personal loans to credit cards, but also products like pay-monthly mobile phone contracts and utilities paid by direct debit.

Here's how to build credit score effectively, even if you're starting right from scratch.

Key takeaways: How to build credit score from scratch

• Open a UK bank account to establish financial stability

• Register to vote or verify your identity with credit agencies

• Build credit history through utilities, overdrafts, and credit builder products

• Apply for a credit score builder card after 6 months

• Monitor your credit report and score regularly

Step 1: Open a UK bank account

If you haven't already got one, having a UK bank account benefits your credit report in three ways:

• A long-held bank account can make you appear more stable to lenders, as it proves you have a good ongoing relationship with your bank

• It may allow lenders to verify your residency

• It helps you manage your money and make payments on time, which may ultimately affect your credit score

To open a bank account, you'll usually need proof of ID (such as your passport) and proof of your address. If you live with your parents or have recently moved to the UK, getting proof of address can be a challenge. But don't worry. Here's how you can get around it:

Skip ahead to step 2 and step 3, then open a bank account once you have a utility bill or other acceptable proof of address.

Consider a digital alternative such as Starling Bank (a fully licensed bank) or Monese (an e-money account aimed at those without proof of address).

Step 2: Register to vote

Getting on the electoral roll benefits your credit score in two ways:

• It may help lenders to verify your identity. This may help rule out fraud and may make you look less risky.

• It proves you have a permanent address, which may show stability and may suggest you're more likely to pay your debts.

Learn more about how the electoral roll may improve your credit score.

What if you're not eligible to vote?

Of course, you can only get on the electoral roll if you're eligible to vote in the UK.

But if you aren't, don't despair. You can get a similar benefit by sending Experian, Equifax and TransUnion:

• a document to prove your identity

• a document to prove your address.

You should also ask them to add a note to your credit report confirming that they've verified your identity.

Step 3: How to build credit history with responsible financial habits

It's hard to get credit if you don't have a credit history. But you can't have a credit history if you've never had credit. It's a bit of a chicken and egg situation.

So what can you do instead? Here are some ideas:

Consider asking your bank for a small overdraft facility

An overdraft allows you to borrow money from your bank account. Since it's a form of credit, it may show up on your credit reports.

Some current accounts feature a small automatic overdraft facility, so it's worth checking if yours has one. If it doesn't, try explaining your situation to your bank and ask them what your chances of being approved would be if you were to apply.

You don't have to use your overdraft. In fact, it's usually better not to, as overdrafts tend to be expensive due to the interest you pay. The point is to potentially build your credit scores by adding more information to your credit reports.

Put your utilities, broadband and other household bills in your name

More and more, companies such as utilities and broadband providers are sharing data with credit reference agencies. If you don't have a credit history, putting these bills in your name may be your opportunity to start building your score.

For best results, check that your name is spelled correctly and always write your address in the same format. Even something as simple as a misspelled street name could lead to inaccuracies in your report.

Pay by direct debit whenever possible

If you have bills in your name, it's important that you always pay them in full and on time. The best way to do this is to set up direct debits. This ensures you won't forget a bill, because the money leaves your account automatically.

Of course, you'll always need to have enough in your account to cover what you owe. Otherwise, your payments won't go through. If this happens repeatedly, it may damage your scores.

Consider a credit builder product that doesn't require a credit check

There are products out there designed to help you build your credit history that don't require a credit check. For example, Cashplus and iCount offer prepaid cards with a credit builder option. This credit builder option is essentially a loan that you pay back in monthly instalments, which builds your credit history. However, these cards usually have a monthly fee.

There is also a product called Loqbox which allows you to make monthly saving deposits (from £20) that count as loan repayments, building your credit history. If you change your mind you can get your money back at any time.

Make sure you consider carefully whether these options are for you. For Loqbox you will need to save £20 a month at least (but you get the money back), and prepaid cards with a credit builder option usually charge a monthly fee.

Step 4: Use a credit score builder card to build credit

Once you've been managing your finances responsibly and paying your bills on time for a while, it's time to apply for your first credit card - a credit score builder card. You should be ready for this step after about six months.

Credit score builder cards are designed specifically for people with little or no credit history. They usually have very high interest rates (typically 30% or more), and rarely have any perks.

However, they may be a powerful way to build your credit scores. And if you handle them responsibly, your provider may increase your credit limit and decrease your interest rate over time.

Credit cards may affect your credit scores, so you do need to be careful:

• Use an eligibility checker before you apply.

An eligibility checker lets you find out your chances of being accepted without affecting your credit report and score.

• Look for cards and loans with ClearScore's Triple Lock feature, which indicates a strong likelihood of acceptance, though lenders always make the final decision.

• Make small, regular purchases.

A good rule of thumb is to aim to keep your credit utilisation below around 30% where possible. This shows your credit card provider you can manage credit responsibly.

• Always pay your statement balance on time and in full.

You can pay just the 'minimum payment' without directly damaging your score, but regularly doing so can increase your debt and harm your financial profile. However, the remainder will attract interest. Credit score builder cards have high interest rates, so carefully consider your affordability if you choose to use one.

Step 5: Apply for a better credit card

You've managed your bank account responsibly, paid all your bills on time every month and used a credit score builder card to build up your credit scores. Now, it's time to start reaping some of the benefits of your hard work.

Once you've built up your credit score to a certain level, you'll have a greater chance of qualifying for a better credit card. Aside from a lower interest rate and a higher credit limit, a new credit card could also give you the following:

• rewards

• cashback

• a 0% interest introductory period

Of course, you still need to approach with caution, as otherwise you may do more harm than good. In particular, you should:

• Check your eligibility using ClearScore's eligibility checker before applying.

• Avoid making several applications in a short period, as this could negatively affect the credit score you've worked so hard to build.

• Try to keep your credit utilisation below 50% where possible and always pay what you owe on time.

Next step: Compare credit cards with ClearScore today.

How to build your credit score over time with monitoring

Building a great credit score takes time. The longer you keep using credit responsibly and paying on time, the more your score may improve over time.

It's also worth checking your credit report regularly. That way, you may stay on top of your score and fix any problems before they could have a negative impact. It only takes five minutes a month with our handy credit report checklist.

Next step: Get your free credit score and report from ClearScore.

Frequently asked questions about building credit score

How long does it take to build credit score from scratch?

Building credit from scratch often takes six months to a year or more to see improvements, depending on how frequently lenders report your activity, though this can vary. You'll need at least 6 months of responsible financial behaviour before applying for your first credit score builder card.

Can you build credit score without a credit card?

Yes, you may be able to build credit score without a credit card by using overdrafts, putting utilities in your name, and using credit builder products like Loqbox that don't require credit checks.

What's the fastest way to build credit history in the UK?

The fastest way to build credit history is to register to vote, open a UK bank account, put bills in your name, and use a credit score builder card responsibly after 6 months of good financial habits.