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

Low credit scores delaying ambitions for 15.6 million Brits

0
Written by: Emma Lunn
28/07/2021
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.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week