Three in ten borrowers don’t know their credit score

New research by Compare the Market has found that three in ten borrowers don’t know their credit score.

The data also found that only 59% of credit card users are aware of their credit score whilst nearly half (45%) of people with a credit card are not actively trying to improve their credit score.

Among those not trying to improve their credit score, the most cited reason is that it is not important to them (42%). Borrowers who want to improve their credit score tend to be younger, with 94% of 18–24-year-olds trying to improve their score.

One in three 18–24-year-olds (33%) say they don’t know how to improve their credit score, the highest amongst all age groups.

When asked about the factors that most negatively impact credit scores, borrowers highlighted missing payments or not paying off credit cards in full (35%), applying for too many new credit cards or loans (26%),  using too much available credit (24%), and making only the minimum payment on credit cards (21%).

Charlie Evans, Money Expert at Compare the Market, said “Your credit score plays a key role in your financial life, influencing your ability to access loans, credit cards, and mortgages with more favourable interest rates. Improving your credit score is possible with a few simple steps, like paying bills on time, keeping your credit card balances low, and checking your credit report for mistakes.

“If you’re new to borrowing, starting with a credit-building card could help you build a positive borrowing history. It may take time and make sure to never borrow more than you can afford to pay back, but with consistent effort, you can boost your credit score and unlock better financial opportunities in the future. It’s worthwhile shopping around online and comparing cards to find one that best suits your needs and circumstances.”
Among those working to boost their credit score, the most common strategies include: