You are here: Home - Credit Cards & Loans - News -

Low credit scores delaying ambitions for 15.6 million Brits

Written by: Emma Lunn
Millions of people across the UK are delaying buying homes, getting married and changing careers due to poor credit ratings.

According to the research from fintech Tymit, one in three (29%) Brits have let worries about credit scores put a stop to their dreams, with the biggest delayed ambitions including buying a property (22%), followed by buying a car (20%), renovating a home (14%) and buying new technology (13%).

The research found that only half (51%) of Brits are aware of their credit rating and amongst them, only half (50%) are satisfied with it. On the other hand, 38% of credit-aware Brits report having a negative experience of their credit rating – a quarter of them say their credit rating has had an impact on their mental health or left them feeling ‘trapped’.

Uncovering misperceptions

The survey also revealed that misconceptions around credit scores and credit history are rife. Almost three in 10 (28%) have no idea how frequently their score is checked, while close to one in four (23%) are unaware of how their scores are calculated.

Tymit warns that the confusion around credit scores is further sending people into the red. More than half (52%) of Brits were unaware that using buy now pay later (BNPL) services to fund their purchases can bring their credit score down if not paid off in time. Half (50%) of those surveyed were unaware that having no credit history at all can negatively impact credit scores.

Tymit also found that many consumers are also unknowingly improving their credit rating, with utility bills and Netflix and Spotify subscriptions among the top things consumers revealed they did not know affected their credit rating.

Martin Magnone, CEO and founder of Tymit, said: “Your credit rating shouldn’t cost you your ambitions, but the reality is that hopes and dreams have been stalled for over 15 million of us. The misinformation around what our credit scores actually are, their function, and how they are calculated is only compounding the problem – it has to change.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week