Study how people use credit, what they know and how they feel about borrowing, credit building business loqbox New findings were published from its report highlighting concerns about British understanding of the lending sector.

In it Report,title Borrowing money in the UK: What went wrong with people and how to solve it correctlyLoqbox revealed that while the UK’s average credit score is 644 on the Equifax scale (a score considered “fair”), one-third of UK adults don’t understand the basic lending terms.

Credit can be very helpful for making a living, but loqbox It has been found that one in ten of the British are invisible, and now two in ten people turn to future purchase payments (BNPL) to pay for essentials such as food and fuel, demonstrating the risks associated with it. When money is tight, people feel pushed to the corner and turn to loans without always considering the repayment aspect of the borrowing. According to Loqbox, confusing language in the agreement, unclear terms and hidden fees may make people unsure of what they are registering for.

Sadly, for some people who are excluded from mainstream credit, they have no choice but to go to the street loan sharks to get the funds they need and constitute shockingly high interest rates and fees without legal protection.

Tom Al“How we see money, and what we know about how to borrow money, can change the direction of our lives. When used responsibly, credit is a very powerful tool that can help people reach important milestones, whether it is renting new milestones in a new place, whether it is renting in a new place, whether it is buying other moments at your first home, buying other moments at your wedding, the tools for your wedding, can help you achieve special facts. Credit responsibly.

UK population’s interest in credit

The report contains a survey conducted with the voting company Censusexplore why people borrow, how to obtain credit and attitudes towards managing personal finance throughout the UK.

The Loqbox/Censuswide survey collected 1,000 responses from across the UK, including Scotland, Wales and Northern Ireland, young people from 18 to 55 years old and all income, and comprehensively outlines the UK population’s appetite for credit, as well as their interest attitudes, perceptions, decisions, and understanding of borrowing.

Key Discovery

• Last year, 31% of people borrowed money, used a credit card of 49%, used a personal loan of 35%, and used 18% of BNPL.
• Only one in four (25%) said they always consider whether they can repay the money in the long term when borrowing.
• Only 23% said they paid off their existing debt before borrowing more.
• BNPL is most popular between the ages of 45 and 54, followed by those aged 18 and 24.
• Women are more likely to borrow credit cards (54% for men, 50% for men), and men are more likely to borrow BNPL (19% for women, 16% for women).
• 11% said they use BNPL to pay for essentials like food and fuel.
• When borrowing money, only 14% of people always read small prints.
• 33% admit that they don’t understand the key lending terms.
• The largest lending group is in the Northwest region, with Liverpool ranking as home to the largest borrowers in this category.

Eyre added: “The key message conveyed in the report is: When borrowing money, by empowering your own knowledge to make informed loan decisions, you can access better lending transactions, save to achieve your financial ambitions and build a richer life. By improving the knowledge of credit products, people can improve their financial well-being and enjoy a more pleasant and healthier relationship with money.”

Understand loans

To help people in the UK better understand credit and its impact on future finances, Loqbox also shares some important tips:

1. Know what defines a lower credit score: Each credit reference agency (CRA) has a different score table, so take a moment to learn about the differences.

2. 2. Keep the balance low relative to the credit line: Try to use less than 30% of the credit line you are available. It shows that lenders show that you are not borrowing too responsibly.

3. Always pay on time: Your payment history is important. Setting up reminders or direct debit can help you avoid missing payments.

4. Use a mix of credit types that work for you: Managing different kinds of borrowing, such as credit cards, loans, and even phone contracts, can help you build your credit profile – but remember not to open too many credit lines at once, as this can hurt your credit score.

5. Check your credit report regularly: This allows you to spot errors or inaccuracies that may delay your score. Serve Credit karma The annual free report from major credit bureaus can help you understand credit holders.

6. Limit how often you apply for credit: Too many applications in the short term can harm your score and add red flags to potential lenders.

Healthier financial habits

Loqbox creates several smart personal finance tools available under its members. These allow people to build credit history, build healthy habits and gain financial opportunities that might not have been available before.

Loqbox authorizes more than one million people to control their money while they can save and build credit through three major credit reference agencies in the UK: Equifax, explore and transmission. Overall, 80% of members feel better about their financial situation after using Loqbox, while nearly 9 out of the 10 members tracking their credit scores improved.

Whether they are trying to save, have a poor credit history, or just want to learn more about how the financial system works, Loqbox provides people with the knowledge, confidence and tools to achieve their financial goals and feel better about money.