Low credit scores delaying ambitions for 15.6 million Brits
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’.
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.”