As inflation continues to push prices up and lending becomes a more attractive option, an increasing number of customers are checking their credit score and taking steps to improve it.
It is the customers of Lloyds Bank in particular that are becoming more interested in how much capital is available to them. The bank’s ‘Your Credit Score‘ service reportedly experienced a 432 per cent increase in first-time checkers between March and April of this year.
Speaking on this significant influx of users, Elyn Corfield, managing director of consumer finance at Lloyds Bank, said: “This exceeded our expectations and highlights the focus people are putting on their personal finances.
“More than ever, people across the country are taking a closer look at their financial situation and having easy to access information can empower people to make the right decisions for them.”
Powered by the information and insights company TransUnion, the service currently has around 2.5 million customers.
The service, which updates every 28 days within online or mobile banking, provides a range of information related to a customer’s creditworthiness. This includes a customer’s rating, information on what’s affecting the score and how their score may affect any borrowing applications.
What is a credit score?
A credit score is a number based on analysis of a person’s credit records. It shows how likely or unlikely people are to be credit worthy. The score takes into account factors including account history, if bills are paid on time, if customers are registered to vote, amongst other things.
The figure is then used by credit providers (such as banks) when a person applies for credit, to understand their financial health, and expected ability to repay.
People aged between 25 and 44 are the most engaged, making up 54 per cent of those signing up to check their credit score.
The bank found that 56 per cent of people who had checked their credit score in the mobile app by the end of March, returned the following month to re-check their score and get guidance on how to improve it.
According to TransUnion, those that monitor their credit health regularly see a greater improvement over six months than those that don’t.
Kelli Fielding, managing director of consumer interactive at TransUnion in the UK, said: “It’s really encouraging to see people engaging more with their credit information, with more than one in three UK consumers now checking their credit report and score at least once a month.
“We’re also seeing a much better level of understanding in terms of how this information is used, thanks to tools like Your Credit Score, which enables customers of Lloyds Bank to access their TransUnion credit score for free.”