15 million consumers have never checked their credit report

• 76% of consumers have applied for financial credit, yet 41% of these have never checked their credit report – equating to over 15 million consumers

• 57% don’t believe their credit report has a significant impact on their everyday lives – but almost a third (32%) have been turned down for credit  

• Consumers unaware that credit reports impact mobile phone contracts (51%), buying a house (31%) and applying for a credit card or bank loan (26%)

• A fifth (20%) haven’t checked their report as they didn’t know they had one or that they could check it

• A quarter (27%) of consumers who haven’t checked their report are put off by the cost

• Uswitch today launches ‘It’s My Report’ – a campaign calling for a fairer approach to the way consumer credit reports are created and shared in the UK, following the example set in **Germany, the United States and Hong Kong.**

More than 15 million consumers have never checked their credit report, despite the information held about them determining where they live, whether they are able to get the best deals on financial products, and even their ability to get a job. That’s according to new research from Uswitch.com, the price comparison and switching service.

The new research reveals that although 76% of consumers have applied for financial credit, over half (57%) of these don’t think their credit report impacts significantly on their everyday choices. In fact, 51% of respondents don’t believe it affects their ability to secure a mobile phone contract, buy a house (31%) a credit card or loan (26%).

The findings reveal the extent to which consumers are confused about how credit reports are compiled and what actually affects their credit rating. This is at a time when personal debt is costing the British economy £8 billion annually, through the damage it causes to family life, employment prospects, mental and physical health as well as the cost to state services.

The research also shows that less than half of consumers (48%) are aware that being on the electoral roll impacts their ability to get credit. This is despite lenders using the electoral register as one of the main ways to verify names and addresses of applicants. Instead, over a third (38%) believe age, followed by marital status (23%) are key contributors to a credit report, when in fact they have no impact.

The fact that consumers often have to pay for access to their credit reports is stopping a quarter of those who have never checked it (27%) from accessing this information. Furthermore, 83% of these people said if credit reports were free they would be more inclined to check their rating regularly.

David Mann, Head of Money at Uswitch.com, comments “The mystery surrounding credit reports is causing millions to miss out on the best financial deals and in some cases their dream home or job. Consumers are flying blind, unaware how lenders are arriving at critical decisions about them and lacking the ability to do anything about it. We believe this is grossly unfair.

“The UK economy may be improving, but total personal debt has reached record levels, now standing at staggering £1.4 trillion. Consumers are walking a tightrope, trying to balance rising living costs with stagnant wages and many are relying on debt to make ends meet. They need all the help they can get, and information is power.

“All consumers should have free access to their own personal credit report – not only to view it, but to check it thoroughly and correct any errors. That’s why we are launching ‘It’s My Report’ so consumers can regain control of their own information and take action where needed to ensure they always get the best possible deal.”

Mike O’Connor, Chief Executive of StepChange, comments: “StepChange Debt Charity helps more than 1000 people a day with problem debts. If consumers were able to make better choices about their money, including seeking help when they need it, then we could help solve more debt problems more easily. More transparency around credit scoring data and measures to boost public understanding would be very welcome.”

‘It’s My Report’ is calling for three fundamental changes:

1.         Every person in the UK should get free access to their full credit report, including their credit score, once a year. This will allow them to verify everything is correct and get any errors fixed, as well as better understand all the pieces that make up their credit score.

2.         A change in the law to make it mandatory for a person to be given the specific reasons why they have been turned down for credit when details from their credit report were a factor. This should be alongside free access to the full report used to make that decision.

3.         A standardisation of the credit score scale used in the UK, so your score always means the same thing, regardless of the company you get it from.

Sign our petition for change at ItsMyReport.com