Credit Action, the National Money Education Charity, scares everyone witless every month with unnerving financial statistics. A few examples include the fact that a property is repossessed every hour and 43 minutes, that every four minutes someone is declared insolvent, and that the Citizens’ Advice Bureau deals with 2,595 new cases every day. In its October 2019 statistics, the charity advised that average household debt is a mere £59,441 including mortgages. According to the BBC, the stat without mortgages has risen sharply to £15,385.
Averages conceal an awful lot though. Most credit-active people are men in the 25-34 age group and many in this band would be overjoyed to have personal debt at such a low level.
How does age affect my Score?
The hard fact is that education costs tend to burden all people in their 20s, and for many it is impossible to save, because debt has to be serviced, until well into their 40s.
This is well known by those who build credit scorecards. Age is one of the most predictive ‘characteristics’ of bad debt. It’s not as if the relationship is a nice and straight line though, as once teenagers appear within a family unit, the pressure on income becomes very obvious, so there is a dip in ‘creditworthiness’ in the mid-40s to 50s too.
That said, the most important factor for your Credit Score is the information on your Credit Report. Whether all payments are made on time, the status of your accounts, if you’ve got a CCJ or bankruptcy, and even your Electoral Roll listing are just a few examples of the types information that affect Credit Scores.
Check out our guide on improving your Credit Rating to see exactly what information matters.
How do I check my Credit Score?
Your Credit Score is a useful measurement of your Credit Report’s overall health but digging into the data itself will highlight exactly what’s affecting you. Any lenders you apply to will assess your Credit Report predominantly using their own criteria, so it’s important to see things from a lender’s perspective.
If you haven’t already, you can check your Multi Agency Credit Report and Score with checkmyfile free for 30 days, then just £14.99 per month, which you can cancel anytime online, by email or freephone. Our Multi Agency Credit Reports are the most detailed in the UK, showing data from all four Credit Reference Agencies, so you know you’re seeing everything there is to see.
If you spot anything unusual, or need help in general, our professionally qualified Credit Analysts are just a free phone call or message away.
Updated 05/12/2019 by Sam Griffin