Cardholders confused about credit rating

Research by Saga Platinum credit card shows that one in four adults (24%) have five or more credit agreements but on average more than a third of people (34%) couldn't identify what factors might harm their credit rating.
 
On average the over 50s have just over £10,000 of credit available on credit cards, store cards, overdrafts, catalogue accounts and purchase agreements, while people under 50 have on average around £7,000.

Eight out of ten adults knew that missing payments or exceeding the maximum credit limit could harm their credit rating, but interestingly only a third of adults knew that having numerous cards, which could mean having a lot of credit available, could stop them from getting credit in the future. While only one in ten knew that leaving unused accounts open could adversely affect their credit rating.

However, the over 50s are slightly more savvy than the under 50s when it comes to knowing what affects their credit rating, which could be why only 15% of over 50s are worried about their credit rating compared to over two fifths (44%) of people under 50.

Roger Ramsden, chief executive, Saga Services commented: "Using credit wisely and managing your credit history is key if you want to benefit from the best deals. It is important that people understand the long term implications of having lots of cards. Concentrating on shopping around for those that offer a good rate at home and abroad will pay dividends, and closing accounts that you no longer want to use can help protect your credit rating as well as protect you against fraud."