Does Revolut Affect Your Credit Score?

How Revolut Could Impact Your Credit Score

While your standard Revolut account won't affect your credit file, using their credit products will. Here’s a general overview of how your financial activities with Revolut can influence your score.

1. Applying for Credit: The process begins when you apply for a Revolut credit product, such as a loan or credit card. This typically triggers a hard inquiry on your credit report, which can cause a small, temporary dip in your score.
2. Account Opening and Reporting: If your application is approved, Revolut will open a new credit account in your name and begin reporting its status, including your credit limit and payment history, to credit reference agencies.
3. Ongoing Repayments: Your payment behavior is the most significant factor. Making timely payments will help build a positive credit history, while late or missed payments will be reported and can damage your score.
4. Credit Utilization: For revolving credit like a credit card, the amount of your available credit you use is reported. Consistently high credit utilization can negatively impact your score, as it may suggest financial strain.

How Much Will Revolut Affect Your Credit Score?

The impact Revolut has on your credit score depends on how you use its services. Here are a few key factors to consider:

• Credit Checks. Applying for credit products like loans or credit cards may trigger a hard credit inquiry. This can cause a small, temporary dip in your credit score, regardless of your application's approval.
• Repayment History. Your payment activity on Revolut credit products is reported to credit reference agencies. Consistently making on-time payments can positively influence your score, while late payments will have a negative effect.
• Credit Utilization. The amount of credit you use on a Revolut credit card compared to your limit affects your utilization ratio. High utilization can negatively impact your score, so it's best to keep balances low.

How You Can Avoid Revolut Affecting Your Credit Score

Stick to Debit Functions

The simplest way to prevent Revolut from impacting your credit is to use it strictly as a debit or prepaid account. By avoiding its credit products, like loans or credit cards, your activity generally won't be reported to credit reference agencies.

Manage Credit Products Responsibly

If you do use Revolut’s credit offerings, responsible management is key. Always make payments on time and in full. This ensures any information shared with credit bureaus reflects positive financial behavior, which can actually help your score rather than harm it.

Ways to Improve Your Credit Score

Improving your credit score is entirely possible and can significantly impact your financial health, from loan approvals to interest rates. With consistent positive behavior, most people see meaningful changes within three to six months.

• Monitor your credit reports. Obtain free reports from the major bureaus to check for inaccuracies or signs of fraud that could be hurting your score.
• Set up automatic payments. Your payment history is the most significant factor in your score, so automating payments ensures you never miss a due date.
• Reduce your credit utilization. Aim to keep your credit utilization ratio below 30% by paying down balances or requesting a credit limit increase.
• Become an authorized user. Being added to the credit card of someone with a strong payment history can help boost your own credit file.
• Diversify your credit mix. Lenders like to see that you can responsibly manage different types of credit, such as credit cards and installment loans.
• Limit hard inquiries. Avoid applying for too many new credit accounts in a short period, as each application can temporarily lower your score.

The Bottom Line

Revolut's impact on your credit score depends on how you use the app. Standard accounts typically won't affect it, but applying for credit products like loans will be reported.

Frequently Asked Questions

Does opening a Revolut account affect my credit score?

No, opening a standard Revolut account does not affect your credit score. They only perform a soft identity check, which isn't visible to lenders.

Does everyday spending on Revolut impact my credit score?

Your daily transactions with a standard Revolut account are not reported to credit bureaus, so they do not have any impact on your credit score.

Can I build credit history with a standard Revolut account?

A standard Revolut account does not help build your credit history. Only specific credit products, when used responsibly, will report activity to credit reference agencies.