Despite the proportion of UK consumers with a credit card growing by around eight per cent in the last year, around a third don’t know their credit score, according to new research by TransUnion, the information and insights company.
As inflation remains above the Bank of England’s two per cent target, UK adults are becoming increasingly concerned about the impact on the cost of everyday goods.
TransUnion’s Q1 2025 Consumer Pulse Study found inflation for everyday goods is still by far the biggest household financial concern for the next six months at 56 per cent, up six per cent from the previous quarter.
Amid rising costs, 47 per cent of UK adults who said they plan to apply for new credit or to refinance existing credit in the next year, plan to apply for a new credit card, while 17 per cent said they will request a credit limit increase for an existing card.
“Even though inflation is significantly down from where it was at its peak, UK consumers are still feeling the squeeze,” said James O’Donnell, director of research and consulting at TransUnion UK. “For many people, income hasn’t caught up with rising costs, and as household price inflation climbs up to 3.7 per cent, turning to credit can help make ends meet.
“As economic uncertainty continues in 2025, businesses and financial institutions must ensure that consumers can access the appropriate credit products to manage their finances and build resilience, without falling into unmanageable debt.”
Credit use outpaces awareness
The latest TransUnion Consumer Pulse Survey found that 77 per cent of consumers believe that access to credit is important to achieving their financial goals, rising to 93 per cent of Millennials and 97 per cent of Gen Z.
With consumers increasingly applying for credit, many are checking their credit reports to try to improve their credit scores. Facing major financial milestones such as buying their first home, 47 per cent of Millennials who said they monitor their credit, said they do so to improve their credit score.
Despite their crucial role in credit applications and access to financial products, 34 per cent of UK consumers said they don’t know what their credit score is. This rises to 49 per cent among Baby Boomers and 36 per cent for Gen X, the highest among generations surveyed. In fact, less than a quarter (23 per cent) of Baby Boomers who said they check their credit score are doing so to try to improve it, the lowest among generations surveyed. This is possibly due to their more established credit histories.
Earlier this year, TransUnion revealed that one in five UK adults would consider themselves financially vulnerable. The same research found that 10 per cent of UK adults report they wouldn’t be able to maintain their current lifestyle without credit or financing options, yet many still struggle to access credit, with nine per cent indicating having been turned down within the last 12 months.
