Shocking percentage of Americans don’t know their credit rating

One in eight Americans don’t know their credit rating, new research finds.

The survey of 2,000 Americans found that 13% of those surveyed literally had no idea their current credit score.

In fact, even among those who have checked their credit score, 46% have not done so for more than two months.

A study conducted by OnePoll in conjunction with LendingPoint looked at respondents’ credit score knowledge and lending habits.

He found that 71% of those surveyed were completely unaware of the various ramifications associated with a bad credit score.

However, people generally understand that a low credit score has an impact on their quality of life. Seventy-four percent say a low or bad credit score is preventing someone from leading the life they want to live.

One in eight Americans don't know their credit rating, new research finds.

It turns out that 44% were unaware that higher rates and more restrictive terms on approved loans can accompany a bad credit score.

In addition, 54% say that a low credit score can make it difficult to approve a loan, while an additional 48% say that a low credit score can make it difficult for them to obtain a job or a credential. security.

In fact, seven out of ten people surveyed say they personally felt held back in life because of a bad credit score.

“These results are sobering,” said a spokesperson for LendingPoint.

“There is no doubt that access to credit creates upward mobility and traditional lending is based almost exclusively on credit scores. People can’t resolve access if they don’t know what’s holding them back.

For 45% of those surveyed, a low credit score meant they were denied a loan while an additional 43% experienced higher rates and more restrictive terms on approved loans.

Not to mention, a staggering 41% revealed that their bad credit had caused them problems in renting an apartment.

Of those who have rented an apartment in the past, three in five say they were unaware that their credit rating would even affect whether or not their application was approved.

And that’s not all that surprised tenants. A whopping 55% were unaware that renting an apartment would involve others looking at their credit score, while a further 51% were unaware that they might need a guarantor if their credit score did. is too low to get an apartment.

“Your credit score is like an adult report card and unfortunately rates you based on your closeness to the baby boomer model from college to credit cards, long term employment, car loan. or a mortgage. If that’s not you, you often fail credit scores.

“In order to tell proper credit stories, you need more data from more sources,” added the LendingPoint spokesperson. Creditworthiness is not a single number – it is the product of hundreds, if not thousands of decisions and behaviors that we now have the technology to decipher.

It turns out that Americans live in a perpetual loop of bad credit because they are unaware of the various factors that play a role in increasing or decreasing their credit score.

66% of those surveyed assume age is a factor in determining their credit score, while 77% mistakenly assume that having high balances on their credit card while paying them off on time will not hurt their credit score.

And that’s not all Americans mistakenly believe when it comes to credit scores. Eighty-three percent of those surveyed mistakenly believe they need to keep a balance on their credit card to improve their credit.

It is these false assumptions that leave the eight in 10 passively or actively trying to improve their credit score in a cycle of bad credit.

“Consumers need to understand the impact of credit on their future, but they also need to realize the power they have to change that future. A lower credit score does not necessarily lock consumers into a perpetual cycle of bad credit.

“For 40 years, FICO has been the only tool available to lenders,” added the LendingPoint spokesperson.

“By relying excessively on credit scores, traditional loans neglect many creditworthy people who deserve better access to money. In the United States, nearly 50 million people fall into this category, with credit scores ranging from 580 to 720. Below 700, lenders tend to group borrowers together and label them all as “subprime.”

“The good news is that today we can use data and technology to understand your entire credit report, not just your credit score. This means that people who previously had limited access to credit have more options and more responsible lending choices that can help them build a stronger financial profile. “

About Sally Dominguez

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