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
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Most DevOps journeys involve several phases of maturity. Research shows that the inflection point where organizations begin to see maximum value is when they implement tight integration deploying their code to their infrastructure. Success at this level is the last barrier to at-will deployment. Storage, for instance, is more capable than where we read and write data. In his session at @DevOpsSummit at 20th Cloud Expo, Josh Atwell, a Developer Advocate for NetApp, will discuss the role and value...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
Regardless of what business you’re in, it’s increasingly a software-driven business. Consumers’ rising expectations for connected digital and physical experiences are driving what some are calling the "Customer Experience Challenge.” In his session at @DevOpsSummit at 20th Cloud Expo, Marco Morales, Director of Global Solutions at CollabNet, will discuss how organizations are increasingly adopting a discipline of Value Stream Mapping to ensure that the software they are producing is poised to o...
This talk centers around how to automate best practices in a multi-/hybrid-cloud world based on our work with customers like GE, Discovery Communications and Fannie Mae. Today’s enterprises are reaping the benefits of cloud computing, but also discovering many risks and challenges. In the age of DevOps and the decentralization of IT, it’s easy to over-provision resources, forget that instances are running, or unintentionally expose vulnerabilities.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.