Over half of Brits in the dark over their credit score
A survey has revealed that 51 per cent of Brits do not know their credit score even though many are aware of its importance.
Despite over 70 per cent of respondents knowing how to find out their credit score, and 74 per cent admitting to knowing its importance the majority of respondents still did not know the exact figure.
What is more, almost a fifth of respondents said that they wanted to improve their credit score but did not know how to do so according to NerdWallet data.
Brean Horne, personal finance expert at Nerdwallet said: “It is worrying to see that so many people are in the dark over their credit score. Our credit scores can influence our chances of being approved for new credit, such as a mortgage or credit card. So it is really important, and very possible, to keep on top of it. It is vital that people keep track of their credit scores regularly.”
A total of 12 per cent of respondents believe they have been rejected by a loan or credit card provider this year because of their rating. One in seven Britons, or 14 per cent, said their credit score is a source of stress and anxiety, with an equal number believing a low rating is currently holding them back from making major life changes.
Horne added “Understandably, personal finances have been one of the main sources of stress and anxiety throughout the Covid-19 pandemic for people across the UK. And our research has revealed that credit scores have been of particular concern.”
The ratings are essential for helping people to access finance including mortgages, credit cards and loans.
While there are many simple steps which people can take to improve their credit score, such as registering to vote or making sure bills are paid in a timely way, people lack awareness and are missing out on competitive rates for financial products as a result.
The Nerdwallet survey included 2,000 respondents.
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