Lloyds Bank reports increased consumer engagement with its credit score service

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As inflation continues to drive up prices and loans become a more attractive option, a growing number of customers are checking their credit score and taking steps to improve it.

These are the customers of Lloyd’s Bank especially who are increasingly interested in the amount of capital they have. The banks ‘Your credit scoreThe service reportedly saw a 432% increase in the number of first-time checkers between March and April this year.

Elyn Corfield

Speaking of this large influx of users, Elyn Corfieldmanaging director of consumer credit at Lloyds Bank, said: “This has exceeded our expectations and highlights the care people are giving to their personal finances.

“More than ever, people across the country are taking a closer look at their financial situation, and having easy-to-access information can empower people to make the right decisions for them.”

Powered by the Information and Insights Company Trans Unionthe service currently has about 2.5 million customers.

The service, which is updated every 28 days in online or mobile banking, provides a range of information relating to a customer’s creditworthiness. This includes a customer’s score, information about what affects the score, and how their score may affect borrowing requests.

What is a credit score?

A credit score is a number based on an analysis of a person’s credit records. It shows how likely or unlikely people are to be creditworthy. The score takes into account factors such as account history, whether bills are paid on time, whether customers are registered to vote, among others.

The figure is then used by credit providers (such as banks) when a person applies for credit, to understand their financial health and expected repayment capacity.

Consumer Engagement

People between the ages of 25 and 44 are the most engaged, accounting for 54% of those signing up to check their credit score.

The bank found that 56% of people who checked their credit score in the mobile app at the end of March returned the following month to recheck their score and get advice on how to improve it.

According to TransUnion, those who regularly monitor their credit health see greater improvement over six months than those who don’t.

Kelli Fielding, Managing Director, Consumer Interactive, TransUnion UK
Kellie Fielding

Kelli FieldingManaging Director of Consumer Interactive at TransUnion in the UK, said: “It’s really encouraging to see people interacting more with their credit information, with more than one in three UK consumers now checking their credit and score at least once a month.

“We are also seeing a much better level of understanding in terms of the use of this information, with tools such as Your Credit Score, which gives Lloyds Bank customers access to their TransUnion credit score for free.”

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