With almost a third of UK adults feeling negatively about their financial situation, the conversation around financial wellbeing is more relevant than ever. Credit card brand Aqua has conducted a new piece of research, surveying over 5,000 UK residents to explore the prevalence of bad credit scores and financial mistakes across the nation, and to reveal what people’s biggest financial mistakes and learnings are. Aqua’s Commercial Director, Sharvan Selvam, has also shared insights into how people can start to take steps to improve their credit scores and overall financial wellbeing.

You can find the full research here: https://www.aquacard.co.uk/building-better-credit/financial-learnings-and-mistakes

Over one in 10 Brits feel ‘uncertain’ about their current financial situation

Despite the tricky financial landscape the UK is currently facing, Aqua’s research found that people predominantly still have positive emotions towards their financial situations with 15% of survey respondents expressing they feel ‘content’.

However, despite these positive sentiments, some of the UK population still feel unsure about their finances. The survey revealed that just over one in 10 (11%) Brits feel ‘uncertain’ about their current financial situation, and a further 9% feel ‘anxious’.

For Brits already feeling uncertain about their finances, having a low credit score can add to the strain. Among those with a bad credit score, 26% said it causes them stress, making it the most common response. However, feelings of frustration, anxiety, and concerns about the future are shared by 21% of respondents, highlighting the challenges many face. While these emotions are common, they also reflect a desire for greater financial stability and control.

However, a bad credit score doesn’t have to be a lasting challenge, and there are simple ways to improve it. After boosting their credit score, many Brits say they feel a lot more positive. The most common reaction is relief (35%), followed by feeling more in control (32%). Sharvan Selvam, Commercial Director at Aqua, says, “Improving your credit score might not always be top of mind, but it plays an important role in helping you reduce financial stress.”

Sharvan continues, “It’s incredibly encouraging to see so many people feeling more empowered and confident as a result of taking steps to boost their credit score, and that nearly a quarter of those we surveyed expressed a sense of pride in doing so. Building a stronger credit score is possible with small steps such as making credit repayments on time, which can be made easier by setting up a direct debit or repayment reminders.”

Only 21% of adults say they’ve never made a financial mistake, and impulsive purchases are found to be the most common mistake

With only 21% of UK adults claiming they’ve never made a financial mistake, it is evident that most people encounter some form of challenge at some point when managing their money.

Among those who admit to making a financial error, impulse buys appear to be the most common pitfall, with one in five falling into this financial trap. This can often lead people to spend outside of their means, and with 17% admitting to this mistake.

It’s not just overspending that is leaving people vulnerable – under-saving is almost as common. In fact, 16% of people admit their biggest mistake is not saving regularly enough.