1.2 Million Young Brits Risk Financial Rejection by Skipping Bills - Despite the Average Missed Bill Being Just £7.60

LONDON, February 17, 2016 /PRNewswire/ --

1.2 million young adults have ignored a payment such as a mobile phone or a household bill, according to free credit check service ClearScore. Nearly a third (31%) of 18-34 year olds have been rejected for a financial product such as a mortgage, mobile phone contact or store card because they have defaulted in the past.

This is despite the average missed bill being just £7.60. Defaulting on any payment - big or small - can cause financial rejections because of the negative impact it has on someone's credit score.

Young people are most likely to ignore mobile phone bills: 16% of young people admit to ignoring the last payment of a contract. This figure is three times higher than the proportion of older people who admitted they had done this.

Lack of knowledge could be the problem: 62% of the UK population don't feel informed about the repercussions of missing a payment and this number rises to 70% amongst the Millennial generation. The most common reason people gave for missing a payment was that they already thought the final payment had been paid (27%) but almost a quarter thought it didn't matter (23.4%).

CEO and founder Justin Basini comments, "The consequences of defaulting on a payment - even it's only small - can be huge. A lender will take into account the information in your credit report before giving you a mortgage or a credit card. This isn't just about how much you owe or earn, but how you have managed your credit in the past.

Unless it's a bank or credit card firm, organisations aren't legally required to let you know you're about to default on a payment. The onus is therefore on us to keep track of what we owe to whom. If you're not sure whether there could be an unpaid bill lingering, arm yourself against the disproportionate punishment of being rejected for credit by checking your credit report online for free."

^[1] Based on Censuswide poll of 2021 adults aged 18+ over period 5-10.2.16 and ONS population data 2014. According to ONS there are 14,632,713 18-34 year olds

^[2]Of the 637 18-34 year olds which responded to the survey, 31% responded that they had been rejected for either a mortgage, store card, personal loan, mobile phone contract or car finance