Almost two thirds (62 percent) of Britons aged 18-34 years have struggled to get loans or credit on cards, furniture, mobile phones, cars or mortgages because they lack a borrowing history, according to new research by Credit-Improver.co.uk.

Almost a quarter (23 percent) of this age group has been credit checked for jobs, while around one in seven (14 percent) have been refused a job or promotion after undergoing a credit check. There’s also a concerning lack of knowledge around credit among this age group, with more than half (51 percent) of under 35s unaware many companies now credit check future employees before hiring. Almost a third (31 percent) don’t know what a credit score is, and more than a fifth (21 percent) don’t realise that to buy a mobile contract with a ‘free’ handset requires a credit check. More than one in 10 (11 percent) do not know the difference between a credit and debit card.

A quarter (25 percent) of under 35s don’t think they have a credit score, while 12 percent don’t know if they have one. The majority of under 35s (82 percent) have had no formal education concerning credit, credit scores or credit reporting and 97 percent believe schools and colleges should teach this subject. Tom Eyre, founder of Credit-Improver.co.uk, which helps those who cannot access credit to build a profile and improve their credit scores, says: “Under 35s are particularly affected by restricted access to credit, after lenders toughened up their requirements during the credit crunch. Lenders look at borrowers’ credit histories to decide if they can trust them to repay their loans, but those who’ve never been trusted with credit naturally have no credit history and so are trapped in a chicken and egg situation.

“Not only does society still unfairly stigmatise those who cannot access credit, it hurts financially too. Those with lower credit scores are hit with higher interest rates if they can access credit, while vital services can be more expensive. Utility companies, for example, may make customers who fail credit checks access energy via a prepayment meter, which is always more expensive than paying by monthly direct debit.”