Most consumers don’t understand credit scores

WASHINGTON – June 11, 2019 – Knowledge about credit scores is at its lowest level in the past eight years, according to the ninth annual credit score survey by the Consumer Federation of America (CFA) and VantageScore Solutions. On most knowledge questions, correct scores declined by more than 10 percentage points – and sometimes by more than 20 percentage points. For example:

  • 78% of respondents in 2012, but only 62% in 2019, correctly indicated that people have more than one credit score
  • 85% in 2012, but only 66% in 2019, correctly answered that keeping a low credit card balance helps raise a low credit score or maintain a high one

However, over the same period, the proportion of respondents who considered their knowledge of credit scores excellent or good rose from 54% to 60%.

“Consumers know less about credit scores but think they know more,” says Stephen Brobeck, CFA senior fellow.

“We are pleased that many consumers now have free access to their credit scores, but consumers must also take advantage of all the additional information about credit scores and credit files in order to make better credit decisions,” says Barrett Burns, president and CEO of VantageScore Solutions.

Source:  © 2019 Florida Realtors®

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