Data analysis shows that there is substantial discrepancy between average credit scores in the main cities of the United Kingdom. While residents of London and Edinburgh are more likely to increase their credit scores in their twenties, residents of Cardiff and Belfast begin to improve their credit score in their thirties. The highest average credit scores for most age groups is – unsurprisingly – in London. The difference in average credit score between London and Cardiff is most significant within the 36-40 age brackets with an average difference of 160 points.
The data also shows that the majority of UK residents are still not checking their credit score. 49% of UK adults have never checked their score, and this figure is at 72% for younger people. This means that nearly half of UK adults and over 70% of young people don’t have a full picture of their financial health. Understanding your financial health and credit score is critical to ensuring your financial wellbeing.
A good credit score can save consumers money, and it is key if they want to make any large purchase like a house or a car. A spokesman for the app, Portify, advised that to improve their credit score, consumers can do so by:
- Applying for a credit card – Consumers must understand the fine print and try to get one without annual fees.
- Keeping credit cards balances relatively low – Consumers should spend around 10% of their credit card limit, and always make sure not to spend more than they can afford to pay back on time.
- Always paying their bills on time.
- Keeping old bank accounts open – If a consumer can document their repayment history and good behavior through active and aged accounts, it is a sign of trustworthiness to lenders.
- Making sure all their details are correct and they are on the electoral register – Confirming their identity is a preventative measure against identity theft.
- Monitoring their credit score – Consumers can do this by signing up to a free monitoring service. Any rapid changes in the score can alert them to instances of identity theft for example, and can help them track their credit score improvements.