Warning anyone with a credit card could be forced to pay extra £872

Research by TotallyMoney reveals that individuals with poor credit scores could pay an additional £872 per year in credit card interest compared to those with good credit scores. The average credit card balance of £2,906 is significantly impacted by credit scores, with half of credit card users incurring interest monthly. People with better credit scores have access to cards with longer 0% offers and lower interest rates, while those with poor scores face fewer products, shorter offers, and higher interest rates. Alastair Douglas, CEO of TotallyMoney, highlights that one in two adults risk paying almost £900 more in credit card interest annually due to errors on their credit reports or missed payments. He urges individuals to check their credit scores and sign up for a free credit report service to identify and address issues. Improving one s credit score is crucial for accessing better offers and saving money in the long run. However, the current system is flawed, and those in the worst situations often face higher interest rates, exacerbating their financial problems. Andrew Hagger, a personal finance expert, warns that the ongoing cost of living squeeze may lead to late or missed payments, further damaging credit records and resulting in higher interest rates for future borrowing. To address these issues, Hagger suggests keeping an eye out for banks that use open banking data to assess creditworthiness. This method provides a more accurate view of one s finances and could unlock a wider range of personalized options. Overall, taking control of one s credit score and financial situation is essential for building a better financial future and avoiding unnecessary interest costs.

Source: birminghammail.co.uk
Published on 2024-09-27

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