August 25, 2006

Scoring agency CreditExpert has issued a warning to people in the UK who are unaware of their own credit rating.

According to the agency, consumer debt in the UK is now the equivalent of £23,000 for every adult, yet most people are unaware of the contents of their credit report.

CreditExpert's analysis of this situation has shown that the national average credit score among UK consumers, based on an Experian credit report, is 763 out of a possible 1,000. This is the equivalent of a "moderate risk" for lenders.

Some 61.9 per cent of people score 721 or higher, according to the research, a number which would assess them as fair, good or excellent risks to providers.

Jim Hodgkins, managing director of CreditExpert, points out: "Credit scores change as your credit history changes – and you can't estimate your current position unless you know your credit history."

Mr Hodgkins identifies a number of factors people should be aware of, including whether they have missed repayments, if they are still associated with someone they used to live with, whether they are registered to vote and if they suspect that someone may be using their identity.

According to CreditExpert, 95 per cent of Britons have never checked their credit report, despite two-thirds of people having borrowings and 13 per cent of these admitting to being uncomfortable with their debt.