Personal Finance | Beware the use of credit scores

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Debt Counselling

Personal Finance | Beware the use of credit scores

Over the past few years credit scores have become big business. Banks now have customers’ credit scores accessible on their banking apps which they are actively encouraged to check.

A credit score also allows consumers flexibility in switching between credit providers as it provides a track record which is measurable and available to any credit provider. But then she told him that he should take out a credit card to improve his credit score. That is not great advice, especially for a student who has no income.

But credit scores are also being used to promote and sell credit – not only by the bank but even credit score products like ClearScore actively offer loans to people who sign up with them. On a more positive note, TransUnion’s figures also found that those consumers who actively engaged with their credit scores were more likely to reduce over indebtedness.

I have seen many cases where people have been lured by the fake economics of credit to spend more than they would have on an expensive household item, like a fridge or furniture.

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