Welcome!

News Feed Item

Over 25 Million People Across the UK Trapped in the Credit Gap

LONDON, December 19, 2012 /PRNewswire/ --

  • One in two* UK adults (57%) are at risk of being declined credit by mainstream lenders
  • Seven in ten women (69%) and eight in ten (82%) 18-24 year olds are at risk of failing a typical credit check
  • Three quarters of people (79%) do not know what their credit score is
  • Of those who have been refused credit, 85% didn't bother to find out why

One in two UK adults (57%) are currently at risk of being declined credit by mainstream lenders, according to 'Mind the Credit Gap' - a report which aims to better understand the creditworthiness of the UK population, commissioned by aqua credit cards.

The research, which was based on consumers answering a typical industry credit check questionnaire, reveals that in general women and young people have less access to credit, with seven in ten (69%) women and eight in ten (82%) 18-24yr olds failing to meet the criteria lenders typically look for.  Mind the Credit Gap notes that people from all walks of life can find themselves at risk of being declined.  Most obvious are those who don't have a credit history.  This includes those who have recently moved to the UK or those who have never entered into a credit agreement before and therefore have no repayment records.  But the research also shows that a third (34%) of people in full time jobs, and 32% who earn in excess of £50,000, could also struggle to get credit.

Having a strong credit score isn't just essential when applying for credit cards, loans, overdrafts or mortgages, it's also important when using other lifestyle services and products.  Those taking out contracts with utility providers, mobile phone companies and broadband services, or even those trying to get the best rates and deals from these services, will often need to pass a credit check.  Yet aqua's findings show that three quarters of people (79%) have no idea what their credit score is, and half (53%) don't know how to improve it.  

Commenting on the findings, Sarah Willingham, founder of letssavesomemoney said: "Finding out that a massive 25 million people are at risk of being declined credit due to a poor credit score is extremely alarming. The Mind the Credit Gap report from aqua demonstrates the importance of understanding your credit score and how it affects your ability to access financial products, but also how to access the best deals and rates on other products and services.  If you have a damaged credit record and don't enquire why, you could end up paying more or at worst, having limited access to credit.  

aqua's report interrogates some of the unsuspecting actions that can have a detrimental effect on a credit score. The following graph shows some of the reasons why people can be at risk of being declined:

     (Photo: http://photos.prnewswire.com/prnh/20121219/582963 )

Sarah added: "Taking some simple steps to improve your score can have a huge impact on your life. Things like making sure you're on the electoral roll, that your credit record has the most up to date address, that you pay your bills on time, and that you only apply for credit when needed, all make a difference. And if you are struggling, there are specialist lenders out there who can help access credit and rebuild your credit profile.

James Corcoran, CEO, added: "At aqua we believe in the importance of helping creditworthy individuals who are left un-served by the mainstream credit industry.  The Mind the Credit Gap report shows that this un-served audience is significant and growing.  Surprisingly one in two adults are at risk of being declined credit by mainstream lenders - that's over 25 million people whose lives are being affected. The irony is that the people who need their money to go further are the ones who end up paying more - paying for utilities and mobile phones on a pay-and-go basis for instance can cost up to 27% more than paying via direct debit. 

He added: "We created the report as we believe it's paramount that people understand the significance of their credit score as well as how to build or repair it.  We are thrilled to have the support of Sarah Willingham, founder of letssavesomemoney, and we hope that our report is a step in the right direction to solve the problem and help narrow the credit gap".

The aqua credit card was launched in 2002 to help the large number of creditworthy individuals in the UK who are left un-served by the mainstream credit industry.  aqua creates innovative credit building credit cards with rewards when customers look after their account - designed for people looking to improve or establish their credit rating.  For more information, visit: aquacard

Top tips on how to improve your credit score:

  • Make sure you're on the electoral role
  • Pay all your bills on time, even a couple of days can make a difference
  • Ensure there's no incorrect details on your credit record - check it regularly and if the details are wrong, correct them
  • Try not to use more than 75% of your available credit limit
  • Look into specialist credit card providers which help people to build and improve their credit record
  • Only apply for products when you really need them- applying for more than four forms of credit in a year can lower your credit score  
  • Do not apply for more than one product at a time as each application can have a negative impact on a credit record
  • Close old credit card accounts and cancel old direct debits
  • End financial associations with ex-partners. Whilst their own credit rating won't impact yours, taking out a product jointly with them will
  • Do not take out more than two forms of credit within a six month period

Notes to editors:

* All figures unless otherwise stated are taken from research carried out between August and September 2012 with Research Plus Ltd.  This involved the development of a typical credit check survey which was completed by a UK representative sample of 2,023 adults.  

About SAV Credit

Founded in 2000, SAV Credit is the UK's leading specialist credit card lender with circa 500,000 accounts and £500 million in credit card assets under management. It is the only company to exclusively provide credit cards to those customers who are not served by the High Street Banks. Fundamental to its success is the provision of affordable lending with fair and transparent pricing. SAV Credit is based in Kent and employs around 70 professionals who are supported by more than 300 people at its servicing partners.

For further information, please contact:
Liz Willder
Teamspirit Public Relations
[email protected]
+44(0)20-7490-8828


Adam Smith
Teamspirit Public Relations
[email protected]
+44(0)207-360-7816

Kelly Hollidge
Teamspirit Public Relations
[email protected]
+44(0)20-7360-7826


More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that iDevices®, the preeminent brand in the connected home industry, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. iDevices, the preeminent brand in the connected home industry, has a growing line of HomeKit-enabled products available at the largest retailers worldwide. Through the “Designed with iDevices” co-development program and its custom-built IoT Cloud Infrastruc...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 ad...
Advances in technology and ubiquitous connectivity have made the utilization of a dispersed workforce more common. Whether that remote team is located across the street or country, management styles/ approaches will have to be adjusted to accommodate this new dynamic. In his session at 17th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., focused on the challenges of managing remote teams, providing real-world examples that demonstrate what works and what do...
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...