1 in 10 (16%) of people in the London confessing to having never checked their credit score

With over 1 in 10 (16%) of people in the London confessing to having never checked their credit score, CredAbility App is today issuing a warning that people’s lack of financial knowledge is not only damaging their access to credit– but is also impacting the financial choices open to them, leaving them with fewer options, at a higher interest rate.

Research1 from CredAbility App, which polled 2000 people across the UK, also revealed that 34% of people in the London don’t know their credit score, with around 1 in 10 (7%) admitting that they need help understanding the point of a credit score.

Boomers, those over the age of 65, were more than twice as likely than Gen Z to have never checked their credit score. Millennials are the most credit score-savvy generation, with 68% saying they know their credit score compared to 37% of Boomers. Boomers are also nearly four times more likely to not understand the point of their credit score compared to Gen Z, Millennials, and Gen X.

CredAbility App, which enables people across the UK improve their credit scores every month alongside access a free weekly credit report, works to help households across maximise their income and be financially healthier and wealthier.

Credit Score Expert Lexi Burgess at CredAbility App said, “Our findings reveal how London is really lacking financial knowledge. Research from the TUC2 has warned of a ticking debt timebomb, with the average household expected to owe £17,200 in two years—and people can make huge positive changes to their finances by being aware of what a good credit score is and what is needed to maintain a healthy credit score.”

A strong credit score will open doors to financial choices. A credit score is a financial snapshot of everyone over 18. It gives lenders a better understanding of whether you can afford certain products or services and whether they can trust you to repay any borrowed money.

“A high credit score will enable lower interest rates on credit cards and loans whilst giving you access to a wider range of financial products. What is very worrying is the lack of awareness about credit scores and its impact on every household’s finances. Whether people understand it or see the point of a credit score is irrelevant – we all have one and are financially judged by it.”

Simon Read, personal financial expert said: “It is not only frustrating to be turned down for credit or a mortgage, it can also be devastating. But knowing that you could face problems when you apply for a loan gives you the power to do what you need to improve your chances.

“That’s why knowledge of your credit score is so important. Your score may be low because of a variety of factors that you can act upon. For instance, putting purchases onto a credit card and paying it off can be a great way to improve your score as it demonstrates to potential lenders that you can handle debt.
“In short, knowing what your credit score is and how to improve it, will help empower you to financial success.”

But how do people ensure they have a healthy credit score? Nearly half of the UK (48%) need to realise that not being on the electoral register will significantly damage their credit score. Lenders check the electoral roll to confirm your personal information, such as your address, and to verify your identity. Getting on the electoral roll is straightforward. If you’re not registered yet, click here.

Lexi Burgess, a Credit Score expert at CredAbility App, also recommends the 30% rule for using credit.

“One straightforward thing everyone can try to do is apply the 30% rule – spend at most 30% of your credit limit. For instance, with a £500 limit, use only £150. This helps prevent overspending and improves your credit score over time.

“Lenders also look for reliability and consistency in credit histories. Making consistent monthly payments demonstrates a responsible borrower. People should allow at least six months of consistent payments for a credit profile to start taking positive shape.”

Regularly monitoring your credit file helps you understand your current financial position and how lenders view your financial profile. The CredAbility app will alert you about changes to your credit score and finance products that might be of interest to you.