According to research by credit experts Experian, the current financial squeeze is turning the UK into a nation of bargain hunters with 83% looking to switch products and/or providers simply to keep them affordable.

The desire for additional benefits (77%), a cheaper price (71%) and better customer service (63%) are also major drivers, where previously consumers would have stayed with the same provider out of brand loyalty.

Motor insurance tops the list of popular products people are planning to switch with 61% of people saying they’ll be looking for a better deal in the coming months. Home insurance (53%) and home energy (34%) products also high on the list.

James Jones, head of consumer affairs at Experian, said: “As many people continue to feel the pinch, significant numbers are planning to shop around for better deals on a range of financial products in the coming months. A wide variety of providers will consult customers’ credit reports when setting up a new account, so it’s important we all make sure the information is accurate and up to date.

“Where there is a credit element to the product, a great credit history is likely to open the door to cheaper deals, so there’s a very real financial incentive for us to ensure our reports paint the best possible picture of our financial circumstances.”

Those living in Scotland and Yorkshire & Humberside are the most likely to switch than other parts of the UK, while it is the younger generation generally who are more likely to shop around for financial products.

Top tips for building a better credit rating:

• Use some credit on a regular basis, but never take on more than you can afford.

• Stay within the agreed credit limits and always make your repayments on time, paying more than the minimum off your credit cards each month if you can.

• Space out your credit applications and avoid making several applications close together as this can signal financial stress.

• Make sure you register to vote at your current address – lenders use the electoral register to confirm who you are.

• Get into the habit of reviewing your credit report on a regular basis, paying particular attention to the following:
– Make sure everything is accurate and up to date and query anything that isn’t.
– Review financial links to other people and ask for any outdated links (e.g. to an ex-partner) to be broken.
– Explain any missed payments by adding a “notice of correction” – a statement of up to 200 words.
– Review your credit utilisation rates (i.e. your balances verses your credit limits) and aim to keep them below 30 per cent.