A quarter of UK credit card owners do not understand what credit rating is, according to research from Confused.com.
The UK price comparison website says even those who do understand the term – a calculation of someone’s ability to repay borrowed money – display a lack of knowledge regarding their own credit rating and what might affect their score.
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In fact, the research suggests that six out of ten people do not know what their current credit rating is, whilst 40% have never checked it before.
Nerys Lewis, head of credit cards at Confused.com, said: "It is important to know the facts about your credit rating as it can affect your ability to apply for things such as mortgages, loans and get the best credit card rates.
"If you don’t know that using your credit card for online gambling can affect your rating, for example, you could potentially be harming your score without realising it."
Confused.com claims one in five people were not aware that missing credit card repayments could affect your credit card rating, whilst nine in ten did not realize gambling online could be detrimental to your score.
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By GlobalDataCredit scores can also be affected by multiple applications for credit cards and taking out a payday loan.
Credit card users can apply for a copy of their credit record from credit reference agencies Experian, Equifax and Callcredit.
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