Bad credit freezes millions of Brits from everyday life

10 Jun, 2015

About six million Britons are being excluded from everyday life because of their credit histories, according to research* conducted on behalf of the Debt Advisory Centre.

People with poor credit scores are struggling to secure a home, open a bank account, get car insurance or a mobile phone contract, the research revealed.

Some 2.7 million people say they have been rejected for a mobile phone contract in the past year. Just over 2 million people have been turned down for a rental agreement due to their credit history and 1.7 million were unable to get a mortgage.

Having a poor credit record even stopped almost 1 million from getting car insurance or taking a new job. Many employers now run credit checks on future employees to reduce the risk of fraud and can reject applicants with credit problems.

Of those who have been turned down for credit in the past year, three-quarters say they will avoid applying for other products or services that may check their credit.

A spokesman for Debt Advisory Centre, said: “Credit scores aren’t just relevant for those taking out a credit card or loan, they can have an enormous impact on your day-to-day life. Millions of people now find themselves excluded from doing important things in life, like getting a home, taking a job or just getting a mobile phone.

“It is really important that everyone checks their credit score regularly through one of the main credit reference agencies, so they can see what information is being held and they can take the necessary steps to improve their credit history as soon as possible.”