Research by finance provider Ocean showed that almost 40 million people are unsure what credit scores mean, with 32 million having never checked theirs.

Only 23% of respondents correctly stated that it was based on the amount of credit a person has, plus an estimate of your ability to repay credit. The score helps mortgage lenders decide whether you would be a suitable candidate for a loan.

However, many people said they did not want to pay providers such as Experian or Equifax to check their score.

Around 13% of people had no idea they could check their own credit score and a further 30% said they did not check as the score could not be changed.

At the other end of the scale – 11% of people said they check their credit rating monthly and 6% check their file every week.

Gareth Shilton, a spokesman for Ocean, said: “It’s worrying to see how many people don’t know what credit ratings are and never check their credit history. Consumers should understand what lenders review and consider when they decide whether to offer credit.

“It’s really important to ensure that your credit history is accurate and up-to-date with your outstanding borrowings registered to your correct name and address. Also, ensure there are no mistakes on your file, such as credit that you haven’t taken out.

“Many people believe you can’t influence your credit rating, which isn’t accurate. If you plan to take out credit in the future, then tidy-up your credit file, get on the electoral roll, and set-up direct directs for your essential bills so you don’t have any missed or late payments.

“One of the myths we found is that many people believe checking their credit report regularly can damage their credit rating. This isn’t true. Checking your own credit file doesn’t leave an imprint and it will help you to spot any irrelevant information and correct it. What will damage a credit rating is having an inaccurate file that leads to lenders turning you down for credit.”