Does changing address affect your credit score?

What is a credit score?

Your credit score is an indication of your creditworthiness, based on your financial history and certain other factors.

The three CRAs in the UK — Experian, Equifax, and TransUnion — all gather information to generate your credit report and score.

These reports include details about your credit accounts, repayment history, and personal information such as your address. The CRAs work independently from one another, and you'll have a different credit score with each one.

Does moving house affect your credit score?

It's possible that moving house or changing address will cause a slight temporary dip in your credit score. This is because lenders like to see stability and staying at one address for a long time suggests you are more stable.

How can I stop moving house from affecting my credit score?

When you move house, it's important to update banks, credit card companies, utility providers and other financial institutions with your new address.

For accuracy, make sure your address information is accurate and in the same format on all your credit accounts.

Keeping these organisations informed about your house move will reduce the chances of bills and other correspondence being sent to the wrong address.

Be aware that even after you've updated your address, it can take a few weeks for the change to filter through to all three credit reference agencies. During this window, there may be a temporary mismatch between your address on your credit file and what you provide on applications — which can trigger extra identity checks. This is normal and will resolve itself, but it's worth bearing in mind if you're planning to apply for credit shortly after moving.

Missed payments will negatively impact your credit score much more significantly than an address change.

Re-register for the electoral roll

One significant factor for your credit score is being listed correctly on the electoral roll.

Being registered to vote at your current address can positively influence your credit score because it helps verify your identity and address stability. When you move, make sure you re-register at your new address straight away.

Moving house and new credit applications

Applying for new credit shortly after moving house can sometimes be a red flag for lenders.

This can be especially true if you've moved house frequently. Lenders may view frequent house moves alongside multiple credit applications as a sign of financial instability.

If you need a new credit card or loan, don't apply for it at your new address until you've updated your details on the electoral roll. Electoral roll registrations are accepted by local authorities at any time and there is then a monthly update to the register.

Does a recent address change affect car finance applications?

A recent address change can make car finance applications slightly more complex, though it shouldn't prevent you from being approved.

Lenders use your address history to verify your identity and assess your stability as a borrower. If you've recently moved and your new address hasn't yet updated across all your credit accounts and the electoral roll, there may be a mismatch between what you tell the lender and what they see on your credit report — which can trigger additional checks or slow down the process.

To give yourself the best chance of a smooth application:

• Update your address with all banks, lenders, and utility providers as soon as you move
• Register on the electoral roll at your new address straight away
• Allow a few weeks after moving before applying for car finance if possible, to give your credit file time to catch up
• Make sure the address you give on the application matches exactly how it appears on your credit accounts

Mail redirection and your credit score

When you move house, you should arrange to have your post re-directed by Royal Mail. Re-directing your mail helps prevent fraud as it reduces the chance of your post falling into the wrong hands. This, in turn, will protect your credit score.

How does a mortgage affect my credit score?

If you have moved house because you have bought your first property — congratulations!

Once you have a mortgage and are making regular payments on time, your credit score could go up. This is because your mortgage lender will report your payment history to the CRAs.

Missed mortgage payments or arrears will have a negative effect on your credit score.

Is my address on a credit blacklist?

It's a common misconception that there is such a thing as a credit blacklist — there's not.

Addresses are not blacklisted by CRAs or lenders, and the financial behaviour of past occupants of your new address won't affect your credit score.

The credit score of anyone you live with won't affect you or your score either. The one exception to this is if you have a joint account as this forms a 'financial association'.

What happens to my credit score if I move abroad?

If you move out of the UK, you'll need to start a brand-new credit history in your new country. Your UK credit score and information created by UK CRAs won't travel with you.

Make sure any money you owe is paid off before you leave the country. Although it might be difficult for creditors to pursue you for money in another country, any debts and County Court Judgments will impact you if you ever move back to the UK.

If you move abroad temporarily, keep some credit accounts open in the UK as they will continue to be part of your credit history.

If you're new to the UK, you'll need to build your credit score from scratch. There are a variety of ways you can build credit fast.

How to protect your credit score when moving house

• Update banks, lenders, utility companies, and other organisations with your new address
• Register on the electoral roll at your new address as soon as you move
• Settle utility accounts at your old address on time
• Don't miss payments for debts or bills during the move
• Try not to apply for credit at your new address straight away
• Monitor your credit report for mistakes or signs of fraud

Moving house is one of life's bigger events, and it's easy for financial admin to slip down the priority list. But a little organisation goes a long way — keep your details up to date, stay on top of payments, and your credit score should come through the move in good shape.