16 million Brits unknowingly damaging their credit scores

New research by free credit score service CredAbility has revealed that millions of Brits are unintentionally harming their credit scores with everyday habits.

It could be costing them thousands in higher borrowing costs and leave them unable to get a mortgage, car loan, or mobile phone contract.

The survey found that 16.6 million Brits, almost a third of the population, have never checked their credit score.

11.6 million (21%) admit they don’t know how to improve it, whilst 6.6 million Brits (12%) have been turned down for credit and didn’t understand why.

Aaron Peake, credit score expert at CredAbility, said, “Millions of people are accidentally making themselves look bad to lenders.

“Something as simple as taking cash out on a credit card can damage your score, cost you money, and make borrowing harder. With more households carrying debt from month to month, it’s more important than ever to understand how your day-to-day financial decisions affect your future.”

The three hidden credit mistakes to avoid

Withdrawing cash on a credit card: “15.5 million Brits (28%) admit to doing this, not realising it triggers high interest from the day of withdrawal, even on a 0% card. It’s a red flag for lenders and could cost up to 95 points on your credit score.

Applying for too much credit at once, Peaker said, ”7.2 million (13%) believe more applications will boost their score. In reality, each hard search stays on your file for six months, and too many in a short time can reduce your score by up to 125 points. Using an eligibility checker performs a soft search, helping protect your score.”

Relying on Buy Now Pay Later (BNPL) schemes he said, “8.8 million people (16%) think BNPL helps their credit score. But they can increase the risk of missed payments, late fees, and legal action if debts pile up.”