Press release: Young people’s knowledge gap on credit ratings causing financial problems
**7 March 2014 **
New research among 18-25 year olds released by the Money Advice Service for Global Money Week (10-17th March) reveals a worrying lack of knowledge about credit ratings among young adults, and highlights how it’s causing them financial problems. More than one in five (22%) admit that they ‘know nothing’ about credit ratings – rising to as much as 29% in some areas of the UK.
Two in five (42%) young adults admitted they don’t know what affects credit ratings, while a third (33%) do not know why firms search credit ratings in the first place. Many 18-25 year olds wrongly believe credit ratings are checked to prove someone’s identity (19%), and to see if someone has a criminal record (12%).