How to check credit score – as more than half of Brits have no idea what it is
More than half of Brits could be unwittingly damaging their financial health because they have no idea about their credit score.
A study based on 2,000 adults found that three in ten have never checked their rating – with a quarter unaware of what contributes to it.
But as one in five Brits plan to apply for a credit card in the New Year it is important be clued up on the system.
The top reasons for not checking your financial health included lack of time (15%), not enough knowledge (21%) and being "scared" of what they’ll find (12%).
The study, commissioned by Experian to mark the launch of their free instant credit score improvement service, found a third of adults have become more aware of their finances due to the coronavirus pandemic.
And a fifth of Brits think they have actually gained more control over their bank balances this year, The Mirror reports.
This is down to 56% having more time to sort out their finances and 50% wanting to be better prepared for the future.
And for more than half of those surveyed, taking back control has increased their peace of mind.
How to check your credit score
You can check your credit score for free online. You will have to provide information such as your date of birth, any address you've lived at in the past five years, and who you bank with.
A score over 750 is considered excellent, while a score over 700 is good.
Consumers can take even greater control of their financial health with Experian Boost.
For the first time, subscriptions to streaming services such as Netflix, Amazon Prime and Spotify, can count towards improving credit scores and ultimately, financial eligibility.
The study, conducted via OnePoll, found that these subscriptions are lockdown essentials that Brits cannot be without.
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In fact, 32% claimed these forms of entertainment have been central to life in recent months.
More than a third see Netflix as a part of "everyday modern spending", while 26% feel the same about Amazon Prime.
Yet, the study found a third would feel more engaged with their financial health if they were recognised for making regular payments.
James Jones, head of consumer affairs at Experian, said: "The current circumstances mean many have had no choice but to take more notice of their spending.
"We also know that consumers are more likely to take an active interest in their overall financial health if they feel like they can directly control it – whether that's by making a concerted effort to build savings or by improving their credit score.
"Our study found that 41% feel they would be more engaged with their financial health if they could prove they were reliable with money using their regular subscription payments.
"Now, for the first time with Experian Boost, keeping up with our TV and music streaming subscriptions can contribute to our overall financial image, which ultimately could positively impact our chances of securing credit in the future."
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