Credit score

More than half of Britons ignore their credit rating

Thursday 02 December 2021 12:20

Millions of Britons will face hard times in 2022.

A survey found that 51% of Britons do not know their credit rating, although many are aware of its importance.

Although more than 70 percent of respondents know how to know their credit rating and 74 percent admit to knowing its importance, the majority of respondents still do not know the exact number.

Additionally, nearly a fifth of those polled said they wanted to improve their credit score but were unsure how to do it, according to NerdWallet data.

Brean Horne, Personal Finance Expert at Nerdwallet, said: “It is worrying that so many people are in the dark about their credit rating. Our credit scores can influence our chances of being approved for new credit, such as a mortgage or credit card. It is therefore very important, and very possible, to maintain control. It is essential that people regularly monitor their credit scores.

A total of 12% of those surveyed believe they’ve been turned down by a loan or credit card provider this year because of their grade. One in seven Britons, or 14%, said their credit rating is a source of stress and anxiety, with an equal number believing that a low rating currently prevents them from making major life changes.

Horne added “Naturally, personal finances have been a major source of stress and anxiety throughout the Covid-19 pandemic for people across the UK. And our research found that credit scores were of particular concern. “

Ratings are essential in helping people access finance, including mortgages, credit cards, and loans.

While there are many simple steps people can take to improve their credit score, like registering to vote or making sure bills are paid on time, people lack awareness and therefore do not benefit. competitive rates for financial products.

The Nerdwallet survey included 2,000 respondents.

Read more: UK credit score giant Clearscore heads for unicorn status after $ 200million Invus injection