Page 11 - Book7E

• A majority of Americans surveyed either did not know (31.7%) or responded incorrectly (35.1%) when asked to define a good credit score (700).
• Fifty-four percent of those surveyed wrongly stated that age is a factor considered in determining credit scores.
• A majority of Americans (52%) do not regularly review their credit report each year. Twenty-three percent of Americans have never reviewed their credit report.
• More than one-third (36.1%) of Americans report that they do not use a budget to manage their family’s expenses.
• Younger Americans are more inclined to use a budget compared to older Americans. Nearly 80% (79.7%) of 18-19 year olds use a budget, compared to only 46.6% of Americans aged 70+ (plus).
• Older Americans have a poorer understanding of credit scores compared to younger Americans. Only 13.6% of 70+ Americans correctly identified 700 as a “good” score. By comparison, more than 43% of Americans in their thirties were able to correctly identify 700 as a good credit score.
When it comes to credit scores, older Americans, however, aren’t the only ones who don’t understand credit scores. The survey’s most critical findings show that an overwhelming number of Americans lack basic knowledge about the many factors that impact credit scores, and most consumers don’t realize they can request a copy of their credit report and receive one for free.
The Consumer Action-Capital One survey also found that two-thirds of Americans don’t understand the numeric value associated with a good credit score. More than one out of five (22.3%) Americans incor- rectly defined a “good” credit score as a value of 1200, and 32% of all respondents did not know what a good credit score was at all.
Reading Your Credit Report
3