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Political apathy crippling young people’s future finances

  • A quarter of 18-34 year olds (25%) have no idea that being registered to vote has a significant impact on their credit rating

  • Despite the voter registration deadline just 11 days away (20th April 2015), up to 3 million 18-24 year olds have not yet registered to vote in this year’s general election

  • 54% of young Brits don’t know that their credit report affects their ability to secure a mobile phone contract, buy a house (23%), and apply for a credit card (30%) or bank loan (33%)

  • Uswitch has launched, ‘It’s My Report’, a campaign with the backing of over 15,000 consumers, to drive a change in the way consumer credit reports are created and shared in the UK.

Millions of young Brits are missing out on a good credit rating because they aren’t registered to vote. A quarter of 18 – 34 year olds (25%) have no idea that not being on the electoral roll affects their ability to buy a house, secure a phone contract, or a bank loan, according to new research from https://www.uswitch.com/banking/>Uswitch.com, the price comparison site and switching service.

According to the National Audit Office, almost six million 18-24 year olds are eligible to vote in this election. But, with only 11 days to go until the voter registration deadline (April 20th), recent research has discovered that half – up to 3 million – of them have not yet registered to vote. This will have far-reaching consequences on young people’s finances because lenders use the electoral register as one of the main ways to verify names and addresses of applicants – ultimately impacting credit scores.

The Uswitch.com research also reveals widespread confusion amongst young Brits about how their credit reports affect their everyday choices. Over half (54%) don’t believe it impacts on their ability to secure a mobile phone contract, buy a house (23%), apply for a credit card (30%) or bank loan (33%). Instead, nearly half believe age (45%), marital status (35%) and Facebook profiles (26%) are key contributors to their credit report, when in fact they have no impact.

Recent changes to the electoral registration system has further compounded the problem for young people. According to the Electoral Commission, 920,000 young people have been wiped off the electoral roll, mainly due to parents and universities not being able to register them on their behalf.

David Mann, money expert at https://www.uswitch.com/banking/>**Uswitch.com**, says; “Political apathy is crippling young people’s future financial choices. The fact is, you can never have an ‘excellent’ credit score without being registered to vote, as lenders use this information to verify the names and addresses of applicants.

“A poor credit rating can be the final nail in the coffin for young people who are already facing challenging conditions, with youth unemployment at an all-time high and many trapped in ‘generation rent’.

“More needs to be done to educate people about the significance of credit reports and how they affect everyday choices. We have launched ‘It’s My Report’ to help young people to take charge of their financial CV and be able to not only better manage their money, but ensure they can secure their financial future.”

It’s My Report’ is calling for three fundamental changes:

  1. Every person in the UK should get free access to their full credit report, including their credit score, once a year. This will allow them to verify everything is correct and get any errors fixed, as well as better understand all the pieces that make up their credit score.

  2. A change in the law to make it mandatory for a person to be given the specific reasons why they have been turned down for credit, when details from their credit report were a factor. This should be alongside free access to the full report used to make that decision.

  3. A standardisation of the credit score scale used in the UK, so your score always means the same thing, regardless of the company you get it from.

Sign our petition for change at ItsMyReport.com

FOR MORE INFORMATION

Katherine Moss

Phone: 020 3021 5893

Email: katherine.moss@uswitch.com

Twitter: @uswitchPR

Notes to editors

All research referred to was conducted by Opinium unless otherwise stated. Opinium Research carried an online survey of 2,023 consumers aged 18 – 34 between 7th – 9th October 2014. Percentages and figures not used in grossed up calculations refer to the proportion of the whole sample unless otherwise stated.

  1. When asked ‘do you think they generally have on your credit score / report’, 25% of those asked believed that it didn’t have a significant impact or didn’t know.

  2. Research conducted by BBC’s Newsbeat http://www.bbc.co.uk/newsbeat/31859916. According to National Audit Office, there are an estimated 5.7 million 18 to 24-year-olds eligible to vote in this election but half of young adults have not yet registered to vote in this year's general election – equating to almost 3 million young adults

  3. When asked ‘looking at each of the following, which, if any, do you think could be affected by your credit score / report’, 46% said yes to getting a new mobile phone contract.

  4. When asked ‘looking at each of the following, which, if any, do you think could be affected by your credit score / report’, 67% said yes to buying a house.

  5. When asked ‘looking at each of the following, which, if any, do you think could be affected by your credit score / report’, 70% said yes to credit card

  6. When asked ‘looking at each of the following, which, if any, do you think could be affected by your credit score / report’, 67% said yes to getting a loan.

  7. When asked, ‘thinking about each of the following, how much of an impact, if any, do you think they generally have on your credit score / report’, 45% said yes to age having a significant impact.

  8. When asked, ‘thinking about each of the following, how much of an impact, if any, do you think they generally have on your credit score / report’, 35% said yes to marital status having a significant impact.

  9. When asked, ‘thinking about each of the following, how much of an impact, if any, do you think they generally have on your credit score / report’, 26% said yes to Facebook profile having a significant impact.

Research conducted by the Electoral Commission, February 2015 http://www.theguardian.com/uk-news/2015/feb/24/million-voters-missing-roll-electoral-commission-students-block-individual-registration

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