Insights ¦ Public Financial Lives 2024 survey Credit information Selected findings

Key Take Aways

1. The Financial Lives Survey 2024 reveals a modest decline in consumer confidence in managing finances, with just 22% feeling highly confident, underscoring ongoing financial resilience challenges.

2. Awareness of the ability to access credit reports or scores from Credit Reference Agencies has increased to 81%, but significant variation persists across demographic groups, highlighting targeted education needs.

3. Approximately one-third (34%) of UK adults obtained or checked their credit report or score in the last year, reflecting a rising engagement in credit monitoring behaviour.

4. The proportion of individuals who paid a fee to check their credit has remained low at 5%, with those in financial difficulty more likely to incur costs.

5. A notable 10% of those who checked their credit report or score identified errors or issues, with success rates in rectification at nearly half (47%) within a month.

6. Understanding of credit reports or credit scores remains limited, with only 39% rating their understanding as very well, though this has marginally improved among older consumers.

7. The survey indicates that awareness remains high, but millennials (18-24) and those with low financial capability are less aware of credit report options.

8. Consumers cite their primary reasons for obtaining credit reports as gaining insight into their financial position (66%) and curiosity (41%), with a smaller group using reports to check eligibility or identify errors.

9. The proportion of adults experiencing difficulties in identifying errors has decreased from 16% in 2022 to 10% in 2024, yet residual vulnerability persists.

10. Less than one-fifth of adults (19%) have obtained credit information via their bank or price comparison website, signalling growth opportunities in alternative access channels.

11. In assessing the timescale for rectifying errors, approximately 35% of disputes were responded to within one month, indicating progress but room for streamlining.

12. The survey highlights critical demographic disparities, notably lower awareness among younger adults, ethnic minorities, and those with low resilience or capability, signalling areas for targeted intervention.

Key Statistics

• 81% of adults aware they can access credit reports/check scores from a CRA or other credit information service (up 3pp from 2022).

• 34% of UK adults obtained or checked their credit report or score in the last year, a 6pp increase since 2022.

• Only 5% of those who checked their credit paid a fee, representing 2% of all UK adults.

• 10% of respondents who checked their credit reports identified an error or issue, down 6pp from 2022.

• 47% of adults who raised a dispute with a CRA successfully corrected errors within a month; 35% received responses in this timeframe.

• 39% of checked respondents assessed their understanding of credit reports/scorings as very well (up slightly from 2022).

• 73% of adults who have not obtained their credit report or score in the last 12 months cited no necessity as the main reason.

• 53% of adults aged 18-24 rate their financial knowledge as low, the highest among demographic groups.

• The proportion of adults aware of the ability to obtain credit reports increased by 3pp, reaching 81% in 2024.

• 52% of 25-34 year olds checked their credit report or score, the highest among age groups.

• Among adults who have revolved a credit card or store card, awareness of obtaining credit reports stands at 92%.

• Positive recent change noted: a 9pp improvement in understanding amongst those aged 65+ since 2022.

Key Discussion Points

• The importance of increasing financial confidence, which remains relatively stable at around 22-24%, yet still indicates room for development.

• The rising trend in awareness about credit reporting indicates proactive consumer engagement but highlights disparities among youth and vulnerable groups.

• Low penetration of fee-paying credit checks emphasises the availability of free or low-cost access points, though some consumers still incur costs.

• The current levels of error detection and correction reveal ongoing consumer vulnerability, with nearly half successfully rectifying issues.

• The challenges of limited understanding of credit reports underline the need for targeted financial literacy initiatives.

• The significant variation in awareness and understanding by demographics suggests a need for tailored communication strategies.

• The role of alternative channels such as mobile banking and price comparison websites in expanding access to credit information.

• The potential for growth in credit monitoring behaviour, especially among individuals applying for multiple financial products.

• The need for streamlined dispute resolution processes, as just over a third of disputes are responded to within the statutory 28-day window.

• The evolving landscape of credit products and consumer behaviour demands adaptive financial services that accommodate different consumer needs.

• The persistent reluctance to request credit reports due to perceived lack of necessity or fear of negative impacts, indicating further behavioural barriers.

• The critical role of accessible, accurate, and consumer-friendly credit reporting systems to build trust and improve financial resilience.

Document Description

This article provides a comprehensive overview of the findings from the Financial Lives Survey 2024, which explores UK adults’ financial behaviours, perceptions, and experiences related to credit reporting and scores. It highlights key trends, awareness levels, understanding, and responsiveness concerning credit reports, alongside insights into demographic disparities. The article aims to inform senior financial services professionals on current consumer engagement with credit information, underlying vulnerabilities, and areas for strategic improvement.