15 Jan 2018 Millions of people are risking their financial future by not checking their credit score, according to Amigo Loans.
New research from the UK’s largest guarantor lender has revealed over half of Brits have never checked their credit file, meaning millions could be jeopardising their financial freedom. There are approximately 51.7 million adults in the UK, meaning that 26 million may be at risk from not checking their credit rating.
Worryingly, 2.5 million (5%) Brits are too scared to look, while almost a fifth believe there’s no point checking as nothing can be done to improve their score.
Simply not knowing how to go about it was the a common reason (24%) for people not checking their record and an even larger number (36%) hadn’t thought about doing it. 12% said they only check when applying for a new form of credit. 3% confessed they don’t even know what a credit score is.
Following the research that highlights people’s fear and misunderstanding of credit, Amigo Loans is calling for a better system that’s more accessible for people, where information is displayed clearly.
Kelly Davies, Chief Communications Officer at Amigo Loans said: “Understanding their credit profile and correcting any mistakes could be one of the most financially beneficial things people can do for themselves in 2018. They’re one of the most important pieces of documentation held in our names, yet people are intimidated by them – but they shouldn’t be.
“It’s confusing for people because there isn’t one central source, and we don’t have one single credit score. The companies that hold our files use different systems, and methods of scoring. We’d recommend customers start with something easy and free like Noddle.co.uk to get to grips with it all.”
There are a number of other credit reference agencies available which allow people to check their score before applying for credit including Equifax, Experian and Callcredit, while Noddle and Clearscore and TotallyMoney provide customers with the ability to see their data for free.
Top tips for improving your credit score:
Helpful Resource Depending On Your Requirements