According to Experian, its survey revealed that people are failing to take action to improve their credit rating because they do not know their score.
Jim Hodgkins, managing director of CreditExpert, said: “Credit scores change as your credit history changes – and you can’t estimate your current position unless you know your credit history.
“It’s in your interest to check all the details of your credit report and find out how to improve your credit score so that you get the best value for money when you take out a loan.”
His comments come as research also showed that every British person owed an average of £23,000 due to rising debt levels.
While people seem happy to take on more debt, many could be paying too much interest for loans because they may have a blip on their credit record that they could alter.
Repaying debt, checking for mistakes on the credit record, or even registering to vote can all help people get the best rate for loans, added CreditExpert.