Do you know your credit score? It turns out, a lot of people don’t, as a new survey finds that 73% of Americans don’t check their credit scores on a regular basis. And 27% don’t review their credit report at least once a year.
While some people may not realize the importance of a credit score, it can affect everything from where you live to what you drive to what kind of job you can get.
- The score is calculated based on five factors: on-time payment history, credit utilization ratio, length of credit history, types of credit held and new credit.
- Not checking your credit score can leave you in the dark about your credit health and keep you from dealing with any mistakes, as well as missing out on the opportunity to improve your credit score.
According to the survey of 500 U.S. adults from BadCredit.org:
- In addition to not checking their credit score, some folks are confused about how credit scores work or how to maintain a good credit score.
- More than a quarter (26%) of respondents don’t know the benefits of maintaining a low credit utilization ratio - the percentage of a borrower’s total available credit they’re using - on their credit cards.
- To cover cost of living increases, 75% of those polled have cut back on spending, while 41% admit they’ve been using savings to keep up.
- Nearly three-quarters (72%) say the current state of the economy has led them to change their financial plans or goals.
Source: Investopedia
Scott's Thoughts:
- Knowing is half the battle, check those credit scores, people!
- Here is a fact that might surprise you. If you have a perfect driving record, but a poor credit score, you will pay more for car insurance. That doesn't seem fair.
- I remember I once had a great rental references but because of my credit score i was unable to rent an apartment i wanted! That stinks!