Yikes, guys. Yikes. Just read a scary stat– several, actually, proving that Americans know diddly squat about credit and credit scores. PLEASE tell me our readers don’t fall into these percentages of consumers who scored horribly! It sounds like many consumers knew what could help their credit rise, but had no idea about the types of things that could really harm their credit. It’s as important to be informed about the latter as it is the former, however. Otherwise, consumers will just be walking around inadvertently lowering their credit because they just don’t know any better. Kathy Lynch of Financial Advisor Magazine reported the other day,
“A lack of knowledge about credit scores could prove costly for consumers. A survey released today found that about 40 percent of respondents did not know that mortgage lenders use credit scores to determine credit availability and pricing. About the same percent wrongly believe that age and marital status are used in calculating the scores.
“Misperceptions about credit scores are extremely concerning to us,” said Barrett Burns, president and CEO of VantageScore Solutions, which released the survey along with the Consumer Federation of America (CFA).”
Click here to see what other questions consumers failed to answer correctly.
OK boys it’s time to go back to Credit Scoring 101. It’s crazy that Americans are so unschooled in the credit department, considering how many of us have credit cards, car loans, mortgages, student loans… Time to brush up on your credit knowledge!