As Freshers’ Week kicks off, hundreds of thousands of students across the UK are moving out and many will be taking charge of their day-to-day finances for the very first time. Credit reference agency Equifax UK has five top tips to help undergrads navigate the fresh challenge of independent money management.

A key piece of this puzzle is understanding how to build credit history from scratch. Students tend to have what is known as a “thin credit file”. This means there is little to no credit history on their file, making it more difficult for banks and lenders to assess creditworthiness or understand their ability to manage repayments.

While government student loans do not appear on UK credit reports or impact credit scores, everyday needs like mobile phone plans, Wi-Fi packages, and utility payments may do so. Without a solid financial routine, freshers risk overspending, missing bill payments or struggling to pass credit checks for independent living essentials that could impact them now and later in life.

Craig Tebbutt, financial health expert at Equifax UK, said: "Starting university is a brilliant adventure, and while managing your first big maintenance loan and monthly bills is likely a new learning curve, it's also a fantastic opportunity to start to understand what it takes to be financially independent.

"This is the perfect opportunity for students to begin building great budgeting habits to start to turn a 'thin file' into a more robust file for future lender consideration. By starting to take a few simple, proactive steps you're not just managing money – you're helping to build a foundation designed to support a lifetime of financial resilience.

Top money tips for students this Freshers’ Week from Equifax UK:

Keep on top of payment deadlines: Just as missing an essay deadline incurs penalty marks, late bill payments can leave lasting damage on your credit file. Think of Direct Debits as setting an ‘automatic submission’ for your monthly expenses, like mobile contracts or Wi-Fi.

Revise what impacts your credit report: Understanding what actually counts towards your credit score is like guessing the right exam questions in advance. UK government student loans (tuition and maintenance) don’t appear on credit reports or impact your credit score. However, bank accounts, arranged overdrafts, mobile contracts, utilities and credit cards do – and missed or late payments might have a detrimental impact.

Avoiding joint accounts: If one course mate slacks off the group assignment, everyone’s grades suffer. Sharing a student house is great for splitting expenses but it is recommended to avoid opening joint bank accounts or signing shared utility agreements, where possible. Joint accounts create a ‘financial association’, meaning a housemate’s bad money habits could impact your own credit standing.

Register on the electoral roll: You can’t borrow library books or enter campus buildings without officially enrolling, and the same applies to your credit file. If you have a ‘thin file’ with little credit history, registering on the electoral roll at your student address is designed to help prove your identity to lenders, which can help enable your ability to pass credit checks for contracts or accommodations in future.

Regularly review your score: Just as revision and prep is key for exam time, getting into the habit of checking your finances is designed to help prevent surprises. Students can check their free Equifax Basic credit score monthly via the myEquifax app (available on the App Store and Google Play) to help monitor account activity, assist in guarding against identity theft, and track their financial health throughout their degree.

For more tips on managing your financial health and independent living, click here.