A recent study carried out by MoneySuperMarket has revealed that an estimated 5.1 million individuals in the UK could potentially benefit from a substantial one-time increase in their credit scores. The key to unlocking this unique opportunity lies in one simple action – registering to vote. This unexpected revelation is a direct result of the snap General Election that took place in July.
The data obtained from MoneySuperMarket’s Credit Monitor tool highlighted a striking difference in the average credit scores of individuals who are registered to vote as opposed to those who are not. In fact, the average score for registered voters was found to be 41 points higher than those who were not registered. It appears that something as basic as being on the electoral roll can have an immediate and positive impact on one’s credit score.
According to Kara Gammell, a renowned personal finance expert at MoneySuperMarket, the traditional methods of building a good credit score usually require individuals to demonstrate responsible credit management over a prolonged period of time. However, the one-time bonus obtained from registering to vote presents a rare opportunity to instantly elevate one’s credit score. This boost is typically experienced by individuals upon their initial registration to vote, making it a unique chance to improve their financial standing.
The rationale behind this uplift in credit score is the increased confidence that lenders have in individuals who are registered to vote. By being on the electoral register, lenders are reassured that individuals are who they claim to be and that the information they have provided is accurate. This level of legitimacy and accuracy is highly esteemed by financial institutions.
In order to shed light on the sheer impact of this one-time opportunity, MoneySuperMarket utilised data from the House of Commons Library to determine the number of individuals registered to vote in each parliamentary constituency. Their findings revealed that over 5.1 million UK adults were not registered to vote as of December 2022. Furthermore, by simply signing the electoral register, individuals collectively have the potential to increase their credit scores by up to 209,439,603 points.
The top 10 constituencies that stand to reap the largest increase in their credit scores include Liverpool Riverside, Bristol West, Nottingham South, Manchester Central, Poplar and Limehouse in London, Oxford East, Cambridge, West Ham in London, Birmingham Ladywood, and Edinburgh East. These areas could witness substantial improvements in the credit scores of its residents should they choose to register to vote.
Kara Gammell further emphasised the significance of this opportunity by urging individuals who may be undecided or have no intention of voting to seriously consider signing the electoral roll. She explained that this simple act, which takes just a few minutes, could substantially enhance their chances of being approved for credit cards, loans, mortgages, or securing better interest rates.
This unprecedented chance to bolster one’s credit score through a one-time advantage serves as a compelling reason for individuals to consider registering to vote. The potential benefits are far-reaching and could significantly improve the financial prospects of millions across the UK.