A quarter of UK adults (26%) do not understand how their credit score is calculated, while more than one in five (22%) said they are unsure what constitutes a “good” score, data from HSBC UK has revealed.
The research, based on a survey of 2,000 people, found that although nearly half (48%) of respondents said they know their current score, while almost a third (29%) admitted they never check it.
A further 8% were unaware whether they even have one.
In addition, nearly half (43%) reported taking no steps over the past year to maintain or improve their score.
The data also pointed to notable generational differences.
60% of millennials (aged 29 to 44) said they were concerned about their credit score, compared with 63% of those aged 55 and over who admitted to taking no action in the past year to manage theirs.
Carl Watchorn, head of customer propositions at HSBC UK, said: “This research highlights a crucial disconnect between financial wellbeing and practical understanding, especially among younger generations.
“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.”
