"Knowing your credit record is vital as it is an indicator of your creditworthiness. Credit scores are used by lenders to decide on whether to give you a loan. Employers, insurance companies and landlords can also ask to check your credit score, so it's worthwhile knowing what your credit score is. A good credit record means you are less likely to be rejected for mortgages, car or personal loans.
"It's a cliché, but usually spring is a season that brings with it new beginnings. Why not take this opportunity to spring clean your finances and really get to the heart of finding out why you are being rejected for finance - if that has been a problem. A credit record can go a long way to giving you an indication of how you've managed your money. Go through it line by line and look at what can be fixed," said Angelique Ruzicka, editor of Moneybags.
"Our poll, unfortunately, shows that consumers don't understand the importance of knowing their credit score and there is clearly a need to create more awareness around this issue, so that more people regularly check to see if their finances are in order," added Ruzicka.
Ruzicka warned that those that have never checked their credit score run the risk of losing out on that dream home or car as they could be rejected for a loan because they have a poor credit score. She added that consumers could also run the risk of having their identity stolen.
"Credit-active consumers should check their credit score through credit bureaux like Experian, TransUnion or Compuscan at least once a year and go through it line by line to ensure that all is in order. Credit bureaux give you one free credit report a year and thereafter charge a nominal fee, so it's an inexpensive but worthwhile exercise," said Ruzicka.
"There are also a number of things that could affect a credit score negatively, including late payments, outstanding debt and the number of creditors you have. Consumers could be rejected for a loan for any of these reasons so it's vital that they find out what they are doing wrong so they can take steps to correct their ways and improve their credit score going forward," concluded Ruzicka.
If your credit score is all in order, Moneybags has come up with several other things you can do to improve your finances. These include:
Spring cleaning tips:
This Moneybags poll was conducted from March 2014 to September 2015.