TransUnion, a global information and insights company, has released its Consumer Credit Monitoring Report, revealing that credit education and monitoring have enabled nearly one in five (20%) UK consumers to reach their goals of paying down debts and better managing their credit usage.
In the new study, TransUnion has identified and defined three primary categories into which the majority of people who regularly check their credit information fall.
First are ‘Credit Improvers’, comprising 33% of consumers who actively monitor their credit information to help enhance their credit scores.
Following closely, are the ‘Credit Managers’, representing 25% of credit monitors, who prioritise debt management and fraud protection. Lastly, the ‘Credit Seekers’ make up 20% of this group, who demonstrate a specific interest in opening new credit accounts in the near future.
James Robinson, managing director of consumer interactive at TransUnion in the UK, said: “Our Consumer Credit Monitoring Report highlights the importance of financial education and the positive impact of credit monitoring on credit profiles, access to credit, and the ability to pay down debt.
By providing consumers with a clearer view of their overall financial picture, credit monitoring can also support financial inclusion and personal empowerment, whilst being a valuable tool to detect fraud. Rooted in our commitment to Information for Good, we ensure that consumers have the support and services they need for their financial wellbeing, including monitoring their credit information.”
The new study revealed that Gen Z and Millennials are more likely to monitor their credit report than older generations.i However, consumers in all age groups are becoming increasingly aware of the roles that financial education and positive credit history play in accessing credit. TransUnion’s Q1 2024 Consumer Pulse study found that 78% of UK consumers believe that monitoring their credit report is important, whilst 77% of respondents also thought access to credit and lending products is crucial to achieving their financial goals.ii
As part of its commitment to ‘Information for Good’, TransUnion’s CreditView solution gives consumers free access to credit information, education and monitoring tools. By empowering consumers to better understand and manage their financial status, credit monitoring enables greater financial inclusion and personal empowerment.
Understanding the needs and motivations of consumers can be beneficial to lenders, as it helps them to build personalised journeys for consumers to reach their credit monitoring goals and foster deeper relationships due to an improved customer experience. The report revealed that 29% of consumers said if a lender offered free credit monitoring services, they would prefer this lender over others when opening new products.
