Edit Your Credit: Two Thirds of Brits Don't Know their Credit Score

(MENAFNEditorial) NEWS COPY

Two thirds of Brits have no idea what their credit score is, according to research.

Poor money-management skills due to poor financial education in schools has led to two thirds of people unable to obtain a mortgage or loan.

A poll of 2,000 adults in the UK found that more than four in 10 have never tried to find out their credit score, and it's been longer than a year since checking for nearly 20 per cent.

And one in five reckon that their poor credit score has seen them denied much-needed cash loans.

The survey revealed that the most common use for credit cards was to buy expensive one-off items, although an incredible four in 10 use it to buy anything, as if it was just a debit card of 'free money'.

One in 20 have had their applications for a mortgage rejected – and even been denied a mobile phone contract, due to their poor credit history.

The study was conducted by online lender MYJAR, whose spokesperson said: 'Many people may not think they need to worry about their credit score, until suddenly a situation arises where they need to borrow money.

'It's really valuable to know and understand your credit score, because if you're able to improve it, it can offer peace of mind knowing you have that safety net there if you need it. You can easily request a copy of your credit score online.

More than half of the country doesn't know exactly how much they owe on credit cards and loans, although estimates suggest that, on average, each Brit has £1,780 worth of credit card debt.

Not including mortgages, they also owe over £1,600 in loans, plus a further £311 on store cards and to overdrafts.

Many Brits are also unaware of ways that their credit score could be improved, with over half not knowing that joining the electoral register can help.

And over four in 10 aren't aware that paying pre-existing loans back on time can boost your credit score.

Just one in 10 respondents have updated their creditors with their new address after moving home, and fewer than one in five have paid off their full credit card balance each month.

A tenth of unfortunate respondents have been turned down for a loan in the past, and the same amount have had no luck applying for a credit card.

Four in 10 believe their credit score was the culprit for their financial difficulties, and 15 per cent put it down to having one or more CCJs against them.

And a surprising one in 20 believed it was because they had been a victim of identity theft, with the criminal leaving black marks all over their records.

MYJAR's spokesperson said: 'We think that financial education has let down previous generations and resulted in a lot of people who don't understand basic money management or any idea of how many financial products work.

'Misuse of credit facilities and a disregard for your credit score has resulted in a lot of people with unnecessary debt. That's why we think it's imperative to be a responsible lender, and to educate our customers through our money management and saving tips blog posts at MYJAR.com.

'We urge people to take credit extremely seriously, and that no one should take on debt without proper consideration. We encourage our customers to educate themselves on things like their credit score and to save their money so that they can take steps to improve their future financial circumstances.'

FIVE TIPS FOR IMPROVING YOUR CREDIT SCORE

MENAFN0407201700703267ID1095599312

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.