More than a quarter of people living in Great Britain do not fully understand their credit rating, new research by icount.co.uk has revealed.
The findings look sure to reopen the debate surrounding credit score improvement misconceptions, with 1 in ten people reporting that they don’t know what actions to take to improve their score.
The results demonstrate that myths and misconceptions surrounding credit scores are still rife in the UK, with almost half of all respondents stating that multiple credit applications would impact their credit score.
Commenting on the results, icount CEO Samuel Mond said, “It’s worrying to see just how many people in the UK feel that they don’t understand something as important as their personal credit scores.
“Our credit rating score is one of the most valuable things that we possess, so having complete understanding of the way they work and more importantly, the actions we can take to improve them is vitally important”
However, some positive news comes in the form of the top 5 actions Brits feel would improve their credit score:
- Paying bills on time
- Ensuring there are no mistakes on your credit file
- Closing any unused credit accounts
- Long-term employment history
- Long-term residential address
Mond adds, “The list of top credit score improvements is really positive, as these are all really great ways to prove to lenders you are an attractive credit prospect. Looking more closely, the top 5 are all long term ways of improving credit ratings.
“With this in mind, I would encourage more immediate methods of improving a credit score, such as using a Creditbuilder™ pre-paid card or registering to vote.”
Do you understand your credit rating? Try our helpful guides below for more information.