Most of us know that our credit score matters, and that it determines what loans we will get and what interest we will pay, but the majority of us aren’t keeping an eye on this particular 3-digit number.
A recent survey carried out by MyCreditMonitor (mycreditmonitor.co.uk) has revealed that even though it is an invaluable tool for keeping on top of your credit score, more than half of Brits (54%) have never checked theirs.
Your credit score can have a major impact on many of the key events throughout your life, but a surprising 60% of Scots have never checked their credit score and 42% of people in Wales have yet to check theirs.
Certain life-changing events will necessitate the need for self-investigation prior to a purchase and a poor credit score can dramatically impact the chances of securing the finance required.
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For this reason 378,214 of us use Google to search for phrases around checking our credit score annually.
Of those who did check their credit scores (46%), around a quarter (24%) had done so because they were considering purchasing a car, and a third (33%) undertook a credit check before taking on a mortgage.
Other events that have wider implications on the financial wellbeing of working adults are also a motivating factor for checking their credit scores. For example, 5% of adults did so when getting married and 4% checked their credit when considering having a baby.
It is not uncommon for working adults to look for ways to ease the financial burden of credit, or to free up finances from one lender to another.
Of those looking to re-examine their finances or to consolidate debts, as many as a quarter (25%) checked their credit score prior to or during this process.
Those looking to change jobs, or rent properties also need to ensure that they are financially stable enough to do so as well as their credit score being high enough, should they need to borrow funds at any time when they don’t have a regular source of income coming in.
For those who had been refused credit, a further 7.52% went on to check their own credit score afterwards.
Taking all of the above into account, it is worrying to consider that over half of adults never check their credit scores at all. This is especially concerning, given how important the credit score is to almost all of the life-changing events that happen to us throughout our adult years.
The fact that 173,243 of us are searching annually on how to improve our credit score is perhaps the result of an unexpected score where we haven’t kept an eye on our spending or credit.
Sati Dhanjal, Vice President at MyCreditMonitor says: “The survey findings highlight the need for all adults to check their credit score regularly, in order to be able to borrow money for life-changing events, such as weddings, car purchases and mortgages to buy properties. Responsible lenders look favourably on responsible adults who are aware of their credit scores and financial obligations.”
To find out more, visit: http://www.mycreditmonitor.co.uk/.