UK Credit Score Mood Board, Courtesy of CRIF

Some survey data from CRIF on credit scores, debt and the cost of living.

UK consumers are the least likely in Europe to worry about how the cost of living has impacted their credit rating, despite being among the most impacted by it. The research from CRIF, Europe’s leading provider of digital transformation solutions for the financial services industry, finds that only one in five (20%) Brits are worried about the impact that the current rise in the cost living is having on their credit score and ability to borrow.

By contrast, and excluding the UK, on average 37% of people in Europe said they worried about the impact on their credit score. This rose to around half of all people in France (49%), followed by Spain (45%) and Italy (44%).

The research comes as the Bank of England announced interest rates would remain unchanged at 5.25% after 14 consecutive rises, and the Governor Andrew Bailey said that rates were reaching their peak. Despite many people in Europe now looking to shore up their finances for the future, people in Britain seem less concerned.

While nearly two thirds (63%) of Europeans say the cost of living crisis has made them more mindful about getting into debt in the future, less than half of Brits (49%) said they felt this way.

The findings highlight significant cultural differences in the UK when it comes to lending and credit compared to the rest of Europe. When asked in more detail about the impact on their credit scores, 27% of Europeans worry that they may no longer qualify for products and services that they previously would have. By contrast, only 19% of people in the UK say they are worried about this.

This comes even though Brits were the most likely in Europe to have previously been turned down for credit.

Sara Costantini, Regional Director for UK & Ireland at CRIF, said: “Our extensive research across Europe shows that Brits have a different relationship to credit and lending to that of their European neighbours.

“Whereas many on the continent are looking ahead to how they can bolster their finances to better withstand future economic shocks, many in Britain show less concern about their credit score or avoiding debt in the future.

“There is a clear role here for banks and lenders to ensure Brits are using credit responsibly and can afford to repay. Utilising the latest digital banking innovations will help lenders better understand their customers’ needs and provide them with insights and services that can help them improve their financial health.”

The findings come as part of CRIF’s cross-European research, which surveyed thousands of adults in the UK, France, Italy, Germany, Austria and Spain. The results form part of CRIF’s Banking on Banks report, looking at Europeans’ relationship with their finances and their financial providers during these challenging economic times.

CRIF’s UK Director, Sara Costantini, will give a keynote speech at this year’s Open Banking Expo on the findings of the report and what banks and lenders across Europe must do to meet their customers’ needs.