Almost half of Gen Z adults fear their credit history will hold them back from renting or buying a home, while many admit they do not understand how credit scores work, according to new research from Loqbox.

The credit-building business surveyed 2,001 UK adults aged 18 to 28 and found that 49% worry their credit history will prevent them from renting or buying a home.

Despite those concerns, just 30% said they know which credit score band lenders use to assess borrowers.

The research also found that one in five (20%) young adults have never checked their credit score, rising to 34% among those aged 18 to 20.

Loqbox said the findings highlight a gap in financial education, with almost two-thirds (63%) of respondents saying they had largely figured out how credit works by themselves.

Just 27% recalled learning about money or credit at school or university.

The study also found that engagement with credit tends to increase as young adults begin making bigger financial decisions.

While 34% of 18 to 20-year-olds have never checked their credit score, that falls to 13% among those aged 27 to 28.

Dani Palmer, consumer finance expert at Loqbox, said: “Many young adults try hard to do the right things: budgeting, watching their bank balance, cutting back where they can, making payday stretch.

“Then they apply for credit, a rental property, or a mortgage, and discover there’s this whole other version of their financial life that lenders are looking at.

“That shock isn’t a personal failing; it’s a systemic gap in how we teach the rules of the financial system.”