Who has the worst credit scores?
Bad credit scores, times are changing
Years ago to have a bad credit score came as a bit of a taboo, many people were ashamed to admit to having a bad credit score, however these days it is much more accepted an people are far more willing to own up. However this does come at a price, and perhaps because of the change of attitudes we are seeing a lot of younger people getting a bad credit score, and perhaps not realising the implications that this will have on them later on in life. We see many more people getting items on credit, which is a real shift change from the old days when you only brought something if you could afford to pay for it.
Lack of money skills
There is an increasing concern that younger people have a lack of money skills, this has been highlighted by some banks who advertise ‘skills’ to their customers including to younger people on how to manage their money. Interestingly 18 and 19 year olds are said to have better credit scores than people in their 20’s-40’s. However this could in fact be that the most important thing in a teenagers life is their mobile phone, and if this is on contract, not paying means being cut off, rather than not paying could lead to a bad credit score.
Lets face it how many of us as a teenager actual gave our credit scores a thought?
Bad credit begins
It is said that our spending habits change, and we are more likely to have a low credit score around the age of 26-30. Of course when we look around this is the sort of time when we have been in work, but perhaps not long enough to be earning a decent wage. But also a time when we are living away from the comfort of our family home and are having rent, and other living costs to deal with. Let alone a time when we are having children.
According to Experian
In a survey carried out by Experian, one of the biggest credit reference agencies in the UK. A credit score starts off quite high, this is when you do not have any real financial history. It will then start to go down until you are in your early 30’s, at which time it will begin to climb up reaching its high point at around 55+ years of age.
Its all about the % APR
The vital thing to remember with credit scores is it has total control on what you are able to borrow and at what rate. If you have a good credit score you can expect to get a loan with a low % APR less than 3 if you shop around, however someone with a bad credit score could either be refused credit by the same company, or expect to pay upwards of 20% APR.
Bad credit car leasing
If you have a bad credit score and need a new car then get in touch with us at UltraCar, we specialise in helping customers with bad or poor credit scores.