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Credit Score Checking on the Rise as Consumers Tackle Cost of Living Crisis

Blog Post05/06/2022
Consumer Credit Report

A new report by global information and insights provider TransUnion revealed the number of people regularly checking their credit score has increased by nearly one third (30%) since the pandemic began.

As the cost of living crisis deepens, the Consumer Credit 2022 white paper, which offers an in-depth look at the current financial landscape and changing consumer habits, points to a greater need to understand credit information (and its importance).

The challenging context

“Our research shows how keenly consumers feel the impact of the cost-of-living crisis. With food and energy bills the areas of greatest concern, 60% say rising costs make it harder to improve their financial positions in the coming year.”

- Satrajit ‘Satty’ Saha, CEO at TransUnion UK

Ongoing polarisation

The report affirms some consumers are better positioned than others to deal with pressures on household budgets. Whilst nearly half (45%) expected to be in a better financial position than before the pandemic, a similar number (40%) were postponing any significant spending due to concerns over their financial futures.

Consumer empowerment

Enabling consumers to proactively monitor and manage their credit information is key to protecting their financial well-being while helping them access the finance they need. The data shows 53% reported a credit score increase within the first six months of self-monitoring.

Kelli Fielding, Managing Director of Consumer Interactive at TransUnion UK, comments: “With a quarter of consumers using credit monitoring services to learn how credit scoring works, we’re also seeing a greater understanding of how credit information is used. As consumer finances are squeezed further, this knowledge will be more important than ever.”

Impact analysis

The same report noted recognising the impact a late or missed payment could have, almost half (47%) of consumers paid their bills on time, while over a quarter (26%) took steps to improve their credit score.

Increased trust across the industry

During the COVID-19 crisis, the sector supported consumers with tailored offerings and rapidly adapted to online transactions. Today, trust in traditional banks is more robust than before the pandemic, sitting at 84% (up from 81% at the end of 2019).

As they continue to close the gap with their high street counterparts, challengers like digital-only banks or apps also saw an increase in consumer trust, reaching 63% (up from 57% in 2019).

The data dividend

TransUnion encourages finance providers to take note of the current challenging environment and ensure they support consumers appropriately. To do that, they need actionable, data-driven insights.

“Our goal is to make trust possible between businesses and consumers by providing data and insights to support informed decisions. As we continue to navigate further financial uncertainty, maintaining and building trust will be essential for finance providers in helping deliver the best outcomes for their customers.”

- Satrajit ‘Satty’ Saha, CEO at TransUnion UK

Download the full report.

Contact your TransUnion representative to see how we can help you build trust and grow your business with data-driven products and solutions.

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