Millions of Brits are going without food and heating to improve their credit score

Millions of people across the UK are cutting back on essentials like food and heating to preserve their credit scores, a new report has revealed.

The Centre for Responsible Credit has found that a third (32%) of low and middle-income borrowers have sacrificed basics needed to live because of their credit scores. This equates to 6.4 million people.

It also warned that credit providers are encouraging borrowers to take on new lines of credit that they may not be able to afford.

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Damon Gibbons, chief executive of the Centre for Responsible Credit, said: “When people check their credit scores using online dashboards, they expose themselves to credit marketing.

“Our research shows this is often harmful, with many encouraged to borrow more than they can afford. We also see industry-promoted fixation on credit scores deterring people in financial difficulties from seeking help with their debts.”

Around one in five low to middle-income borrowers believe that seeking independent debt advice will harm their credit score (17%), and nearly a third are unsure of the consequences (30%).

It will not harm a person’s credit score – instead, it is often considered the first step to improving a credit score when an individual is struggling with debt.

Adam Butler, public policy manager at StepChange, pointed out: “While credit scores can help people understand how lenders may see them, the reality is that they are only one element of what lenders look at when assessing creditworthiness.”

StepChange’s research shows that people in financial difficulty often delay seeking help because of worries about the impact on their credit scores.

“This deepens the harm of problem debt and can lead people to take out further credit which exacerbates their financial problems. It’s important to note that seeking free debt advice and exploring options will not have an impact on someone’s credit score,” Butler added.

He explained that the Financial Conduct Authority has required the credit information industry to set up a new governance body with stronger consumer representation and make reforms to encourage struggling borrowers to seek help early.

Butler said: “We want the industry to build on these steps and ensure people can seek help when they need it without fear of punitive credit reporting.”

Just under three quarters (74%) of low to middle-income borrowers use some form of consumer credit, according to the Centre for Responsible Credit, equating to 19.8 million people. One in five of these borrowers use consumer credit to pay for daily expenses like food and heating.

One respondent of the Centre for Responsible Credit’s survey said: “There’s no choice. If I was not to use credit, then we don’t have any food to eat.”

StepChange’s recent polling found that 18 million people have an outstanding unsecured credit balance of some kind.

The Big Issue has previously reported on Buy Now, Pay Later schemes, which are used by millions but come with risks of debt and can impact credit score like other forms of credit.

Alannah-Jayne Simpson, a mother-of-two, said that schemes like this are a “lifeline” which help her afford rent, bills and food. However, they have mostly gone unregulated.

From July 2026, firms will have to follow consistent standards so shoppers are informed of the risks, affordability and where to get help for debt if needed.

The Centre for Responsible Credit is calling for further changes. It is urging the Financial Conduct Authority and the new Credit Information Governance Body to work together to ensure credit score providers encourage people in debt to seek help.

Borrowers who are showing signs of financial difficulty should be linked with independent advice, it has said. The Centre for Responsible Credit also wants to see controls imposed on credit score marketing so that providers don’t promote credit to people already showing signs of financial difficulties.

Gibbons said: “Protecting borrowers from these harms is overdue. We need greater controls on credit score apps and notifications to prevent inappropriate offers, and proactive measures to link borrowers in financial difficulties to expert debt help.”

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