"There really is no reason why anyone who may be considering applying for a mortgage wouldn’t first spend a few minutes finding out what their credit score is"
Overall, 61% of those surveyed didn’t know how to find out what their credit score is, with those in the 35–44 age bracket the least likely group to know how to determine their current rating.
There was a direct correlation between the older the respondent’s age, the less likely they were to know their credit score. 57% of 25–34 year olds didn’t know their current score, compared to 67% of 45-54 year olds.
The report also found that those aged between 25–34 were most likely to be affected by an adverse credit history or low credit score when applying for a mortgage, with consumers aged 55+ being the least likely to know what measures to take in order to improve their score.
Brian Murphy, Head of Lending for Mortgage Advice Bureau commented: “The importance of a credit score when applying for a mortgage shouldn’t be underestimated, as alongside income, it’s one of the first things that many lenders look at when processing applications. To see that over half of those considering either buying or remortgaging aren’t aware of their current credit score, or indeed how to find out what it is, perhaps signals that a greater degree of financial education for consumers is required.
“Whilst many lenders do take a pragmatic view of circumstances and income when reviewing a customer for a new mortgage, one of the fundamental elements which determines whether or not the applicant will be successful is their credit rating yet, it seems that the majority of people who are either considering applying for a mortgage to purchase a property or to remortgage their existing home are unaware of how important a factor it is. With a variety of free options available to determine one’s credit score online, there really is no reason why anyone who may be considering applying for a mortgage wouldn’t first spend a few minutes finding out what their credit score is, so that they are aware of any potential issues that may impact their application.”
