Most women have never checked their credit score even though they are more at risk of being declined credit, according to a new study.
Findings by Aqua, a credit card provider, reveal that 52% of women have never looked at their credit rating in comparison to 43% of men.
Around 2,110 UK adults were surveyed and it found that 69% of females failed to meet the criteria set by lenders in order to give credit. The national average is 57%.
James Corcoran, Chief Executive of Aqua, said: “It is important to recognise that credit is essential when applying for credit cards, loans, mortgages, or overdrafts, and even other services such as gas and electricity contracts.
“You wouldn’t buy a house without completing a survey, nor buy a car without checking its history, so why apply for credit without checking your credit score.”
The survey found that two thirds of women are aware that a good credit score lets lenders know how suitable they are however; only 45% of women have checked their score in the past year.
Even more worryingly, 29% of ladies surveyed have not even considered checking their score at all within the last 12 months and shockingly, 13% do not know how to do so.
On the other hand, findings showed that women are more likely than men to check their score having been refused credit. What’s more, females are prone to discussing their score with family and friends if it was worse than originally expected.
Where can you check your credit rating?
There are various companies that offer credit scores:
- Privacy Guard
- Check My File
- Credit Confidential
What is it and why is it so important?
Fundamentally, your credit score gives you a clue as to how lenders will score your rating. You can have either good or bad credit- the highest score is 999 so the higher the number, the better. When you apply for credit, lenders will check your credit score to see whether or not they should loan you money.
A credit score is important because in their eyes, it deems how likely you are to pay back the money that they are lending you. It can determine whether you can buy a card, have a credit card or get a mortgage. It also determines what interest rates you are given and how much you can lend.
What if I have bad credit?
Please don’t feel like it is the end of the world. It may still be possible that lenders will accept your application but be conscious that you will probably have to pay more fees because you are more likely to default on the repayments.