Credit card usage is a thing many Britons use as it is an important way of building up a credit score. According to money.co.uk, around a quarter of Britons use credit cards as a way of spreading the cost of big purchases and around one in ten use them as a way of earning cashback and rewards. Another one in ten uses credit cards as a way of accessing money they don’t have at the time and seven percent of those surveyed used them to manage debts.
During the current cost of living crisis, the topic of credit scores, finances and debt has arisen often and Jonathan Such, head of sales at First Response Finance, says the topic often comes with “plenty of myths, misconceptions, and confusion”.
Mr Such, said: “We understand that for many people, credit scores can be a stressful aspect of their personal finances.
“There are many myths surrounding credit scores, and a lot of people have trouble understanding the different credit options available and we believe that having past credit issues shouldn’t always stop you from getting the finance help you want or need.”
The first misconception highlighted was that a person’s credit score was impacted by their income.
Mr Such said: “This is completely false, how much money you have isn’t taken into consideration by credit scoring models, and your credit reports don’t have your income on them, so your score can’t be impacted!”
READ MORE: Mortgage holders who are ‘worried about rates’ urged to make important check or…
