Nearly one in three UK adults have never checked their credit score, leaving many unprepared for mortgage applications
Many potential borrowers may be unaware of issues affecting their mortgage eligibility or ability to secure favourable rates as almost one in three adults in the UK have never checked their credit score, according to new research from HSBC UK.
The survey of 2,000 people found that 36% do not know their current credit score. It also identified a generational divide in attitudes towards credit management.
While 60% of millennials (aged 29 to 44) reported concern about their credit score, 63% of those aged 55 and over said they had taken no steps to manage their score in the past year. Overall, 43% of respondents admitted they had not made any effort in the last 12 months to improve or maintain their credit score.
Although “missing a credit card payment” was recognised by 56% as a factor that could negatively affect a score, only 33% said they had made payments on time as a proactive measure.
For mortgage brokers, the widespread lack of credit awareness means many clients may be unprepared for the mortgage process or unaware of how their credit score affects loan eligibility and rates. Brokers may need to educate clients on credit management and guide them in checking and improving their scores to secure better mortgage options and streamline approvals.
“This research highlights a crucial disconnect between financial concern and practical understanding, especially among younger generations,” said Carl Watchorn (pictured right), head of customer propositions at HSBC UK. “This isn’t just about a number on a screen; it’s about the real-world impact on your wallet.
“A good credit score is the key that unlocks better rates on loans, credit cards, and mortgages, which can save you thousands over a lifetime. The widespread confusion and inaction means many are missing out on these significant savings without even realising it.”
HSBC UK has set out five steps to help individuals improve their credit score:
- Register on the electoral roll so lenders can verify your identity and address.
- Build a credit history by using small amounts of credit responsibly.
- Ensure payments are made on time and stay within credit limits.
- Avoid making multiple credit applications in a short period; use ‘quotation searches’ to compare rates without affecting your profile.
- Regularly check your credit report for errors and correct any inaccuracies.
“Building a healthy credit score doesn't have to be complicated,” Watchorn added. “Simple, consistent habits can make a huge difference.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
