You probably already know that a good credit score is important if you want to borrow money. But did you know that average credit scores vary depending on where you live?
New research from Moneybarn reveals the areas with the best and worst credit scores in the UK. This is based on average scores out of 1,000 awarded by Experian for each local authority. If you want to know which areas have the best credit scores, read on.
One notable billionaire made 99% of his current wealth after his 50th birthday. And here at The Motley Fool, we believe it is NEVER too late to start trying to build your fortune in the stock market. Our expert Motley Fool analyst team have shortlisted 5 companies that they believe could be a great fit for investors aged 50+ trying to build long-term, diversified portfolios.
Best by local authority
1. City of London
With the best average score of 877 out of 1,000, the City of London takes the top spot. This should come as no surprise since this is the historic financial district of London. So the majority of its residents will have above-average incomes and high credit scores to match.
Wokingham comes a close second with an average score of 864. This is a Berkshire market town 37 miles west of London. Wokingham is home to some of the top earners in the UK, and more than 80% of its residents are homeowners.
Chiltern in Buckinghamshire has an average score of 862. It is a popular commuter area with good transport links to London. Many high earners choose to settle here because of the good schools and areas of outstanding natural beauty.
4. Richmond upon Thames
With a score of 860, Richmond upon Thames is fourth on the list. It’s a London borough that includes areas such as Hampton Court, Bushy Park and Twickenham. Salaries are above average and the rate of unemployment is low when compared with the rest of London.
A score of 859 places Elmbridge in the top five. The area has been nicknamed ‘England’s Beverly Hills’ due to its rich and famous residents past and present, including Andy Murray, Kate Winslet and Sir Cliff Richard.
Best by region
Unsurprisingly, the research shows that there is a clear North-South divide with respect to credit scores. The best regions are as follows:
1. South East
With an average score of 810, residents in the South East of England had the highest credit scores in the UK. This area includes Wokingham, Chiltern and Elmbridge, which are all in the top five by local authority.
2. South West
With a score of 801, this region includes Dorset, Bath and Northeast Somerset, the Cotswolds, Gloucestershire and Cheltenham. This may be surprising for some, but the South West of England ticks many boxes when it comes to wealth indicators.
Despite the fact that the City of London had the best average score by local authority, London is in third place overall with a score of 798. London is the largest city in the UK in terms of area and population. It is home to residents spanning a wide range of financial backgrounds and credit scores.
4. East of England
With a score of 796, this region includes high scoring authorities in Cambridgeshire, Hertfordshire, Norfolk and Suffolk. However, there is an inequality between the highest and lowest earners in the area resulting in a wide range of scores.
5. Northern Ireland
Northern Ireland scored 786. This region includes the district councils of Lisburn & Castlereagh; Newry, Mourne & Down; and Fermanagh & Omagh. All of these councils scored 800 or above.
While these scores are an indication of the financial state of specific areas, there are many things you can do to get your personal credit score in shape.
Check out our article on how to improve your credit score for some helpful tips.