Low credit ratings delay life ambitions for three in 10 UK adults

Around 15.6 million people across the UK are delaying buying homes, getting married and changing careers due to poor credit ratings, according to a study from Tymit.

The fintech firm found that 29% of UK adults have let worries about credit scores put a stop to their life plans, with the biggest ambitions including buying a property (22%). This was followed by buying a car (20%), renovating a home (14%) and buying new technology (13%).

Tymit's research, based on based on a sample of 2,007 nationally representative respondents, revealed that only half of Brits are aware of their credit rating (51%), and that only half if this group are satisfied with it (50%).

On the other hand, the findings also revealed that 38% of those who are credit-aware have reported having a negative experience of their credit rating – with a quarter of them indicating their credit rating has had an impact on their mental health. 

The survey also suggested that misconceptions around credit scores and credit history are rife. Tymit stated that three in ten (28%) have no idea how frequently their score is checked, while close to one in four (23%) are unaware of how their scores are calculated.

This confusion around credit scores could be sending people into the Red, Tymit added, with the majority of respondents (52%) unaware that using Buy Now Pay Later services to fund their purchases can bring their credit score down if not paid off in time. Furthermore, half (50%) of those surveyed were unaware that having no credit history at all can negatively impact credit scores.

Tymit CEO and founder, Martin Magnone, commented: “Your credit rating shouldn’t cost you your ambitions, but the reality is that hopes and dreams have been stalled for over 15 million of us.

“The misinformation around what our credit scores actually are, their function, and how they are calculated is only compounding the problem – it has to change.”

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