Nationwide Building Society has launched a credit score tool for customers using its app and online banking.

The lender says it is offering the service for free as part of a commitment to improving financial confidence and education.

FCA research found that only 39% of people who checked their credit report or score said they understood it very well, while 9% said they did not understand it well or at all.

Nationwide customers will be able to see what factors influence their score, and how it can affect key financial decisions.

In the future, Nationwide plans to incorporate further educational materials, to help customers improve how they manage their finances, boost their score and make informed decisions about borrowing.

Nationwide chief product owner David Gordon says: “We know that for some people credit scores are notoriously difficult to understand and we want to help with that.

“Investing in our digital services and offering customers a way to bank that suits them is a key priority for us.

“Our new credit score service has been built to help our customers build financial confidence, improve their financial wellbeing and make more informed decisions about their money.”