As the cost-of-living crisis continues to squeeze household budgets, new research suggests UK consumers are becoming more proactive about understanding and managing their credit scores.
According to a recent survey by consumer credit reporting agency Experian, nearly two-thirds of Britons now check their credit score at least once a year, up from just over half in 2021. The findings indicate growing awareness that a good credit rating can unlock access to more favourable borrowing terms, from mortgages and personal loans to mobile phone contracts and car finance.
“In the current economic climate, it’s understandable that people want to get a handle on their creditworthiness,” said Aisha Khan, a personal finance expert at Experian. “A strong credit score can make a real difference when it comes to the rates and products you’re eligible for, so monitoring it closely is a smart move.”
The survey also revealed that younger consumers are leading the charge when it comes to credit score consciousness. Over 70% of 18-34 year-olds reported checking their score annually, compared to just 53% of those aged 55 and above.
“Younger Brits have grown up in a world where access to credit is essential for everything from renting a flat to getting a mobile contract,” explained Khan. “They recognise the importance of building and maintaining a healthy credit profile from an early age.”
However, the data also highlighted areas where consumers could benefit from greater financial education. While 84% of respondents said they understood the factors that influence their credit score, only 39% felt very confident in their knowledge of how the scoring system works.
“There’s still work to be done in helping people fully grasp the intricacies of credit scoring,” said Khan. “Simple steps like checking your report regularly, understanding what contributes to your score, and taking steps to improve it can make a big difference in the long run.”
With economic pressures set to intensify in the months ahead, financial experts believe the trend towards greater credit score vigilance is likely to continue. As households navigate an uncertain environment, the ability to access affordable credit may prove increasingly crucial.
“In the current climate, a good credit score isn’t just about getting the best deals – it can be a financial lifeline,” concluded Khan. “That’s why we’re seeing more and more Brits make it a priority.”