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Thinking of applying for a loan? How's your credit rating?

By Matthew Plant

8 February2021

Senior couple discussing bills and using a tablet PC It's a well-known fact that a poor credit rating can affect your chances of getting the loan, credit card, mortgage or bank account that you're applying for. But how many people are damaging their credit rating by missing bills?

Some figures from MoneySupermarket.com throw some light on the matter. An online survey of over 2,000 adults in the UK found that 17% of people missed at least one bill payment last year. That indicates that over 8 million people across the UK missed one or more bills over the 12 months.

Breaking the figures down, it seems that 7% (nearly 3 million people) missed a credit card bill, while Council Tax bills were missed by 4% (almost 2 million).

3% - around 1 million people - said they'd missed a personal loan, mobile phone, Sky, broadband or gas / electricity payment (that's 3% for each kind of bill).

As the press release points out, many people are planning to apply for a credit card or personal loan this year, so it's worrying to hear stories about things that can affect an individual's credit rating - and their chances of success when they apply for credit.

Of course, it's also a reminder that many people are struggling with their finances these days. In cases where they simply can't afford to pay their bills, it could well be a sign of long-term money problems.

Image iStockPhotos / Martin Prescott

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Tags: credit rating, loans, credit cards, mortgage, MoneySupermarket, credit, credit history, bad credit, poor credit history

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