Skip to main content

Americans have massive credit score misconceptions, study shows

Americans missing out on credit card rewards programs: Bankrate.com analyst

Bankrate.com industry analyst Ted Rossman gives debt-free Americans tips for getting the most out of their credit cards.

While Americans know their credit score is extremely important to their financial lives – a majority don’t appear to know what goes into it.

Continue Reading Below

According to a new study from CompareCards, 62 percent of Americans did not know the main factor that determined their three-digit score was their payment history. As previously reported by FOX Business, for the average individual’s payment score typically accounts for 35 percent of their overall score.

Millennials and Generation X were less likely to know the correct answer when compared with older generations.

WHAT FACTORS DETERMINE YOUR CREDIT SCORE?

There are a number of factors that are taken into account when your credit score is calculated, and among each person, the weight placed on each category will be different based on things like the length of an individual’s credit history.

The other factors besides payment history that are considered include amounts owed, length of credit history, credit mix and new credit.

The average American had other common misconceptions about their credit scores, too. For example, more than 40 percent of people incorrectly thought checking your credit score too often would damage it.

REFINANCING: WILL YOUR CREDIT SCORE TAKE A HIT?

But about two-in-ten respondents said they would give up alcohol for the rest of their lives if it meant getting an 800 credit score forever.

According to Experian, the average FICO score in the second quarter of last year was 703, though the average scores tended to vary by age. Americans between the ages of 20 and 29 had the lowest average score, 662, compared to people aged 60 and over, whose scores averaged 749. The state with the highest average credit score as of the second quarter – 733 – was Minnesota.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

The average FICO credit score reached 704 in 2018, according to a report released by the scoring company, an all-time high.

As previously reported by FOX Business, there were some common methods used among people who were able to raise their score by more than 100 points over the course of a year – including reducing debt and improving on-time payments, among other things.

GET FOX BUSINESS ON THE GO BY CLICKING HERE 

Source: Read Full Article

Comments

Popular posts from this blog

Fears coronavirus will spark divorce surge as couples self-isolate for months

Coronavirus is "very likely" to lead to an increase in marriage break-ups because of people being confined together for long periods in self-isolation, a leading divorce lawyer has said.Baroness Shackleton of Belgravia, whose previous clients have included Sir Paul McCartney, the Prince of Wales, Madonna and Liam Gallagher, revealed the view of the profession as a growing number of households go into voluntary lockdown in a bid to curb the spread of infection.Official health advice states that if one person in a property has a persistent cough or fever, everyone living there should stay at home for 14 days.Nicknamed the "Steel Magnolia" for her skills and charm, Lady Shackleton told peers at Westminster: "The prediction amongst divorce lawyers is that following self-imposed confinement it is very likely that the divorce rate will rise."Our peak times are after long exposure during the summer holidays and over Christmas."One only has to imagine what i…

At Least 23 People Dead in Australia Bushfires As Blazes Continue Raging

SYDNEY (AP) — A father and son who were battling flames for two days are the latest victims of the worst wildfire season in Australian history, and the path of destruction widened in at least three states Saturday due to strong winds and high temperatures.The death toll in the wildfire crisis is now up to 23 people, Prime Minister Scott Morrison said after calling up about 3,000 reservists to battle the escalating fires, which are expected to be particularly fierce throughout the weekend.“We are facing another extremely difficult next 24 hours,” Morrison said at a televised news conference. “In recent times, particularly over the course of the balance of this week, we have seen this disaster escalate to an entirely new level.”Dick Lang, a 78-year-old acclaimed bush pilot and outback safari operator, and his 43-year-old son, Clayton, were identified by Australian authorities after their bodies were found Saturday on a highway on Kangaroo Island. Their family said their losses left them…

Data-obsessed Brits spend an entire WEEK per year 'analysing their lives with gadgets', survey suggests

DATA driven Brits spend the equivalent of a WHOLE WEEK of each year tracking and analysing their behaviour, according to research.A survey of 2,000 adults revealed we typically use analytical apps and devices to monitor six parts of our lives.More than half (51 per cent) monitor their steps and movement, with 39 per cent tracking their fitness and 34 per cent regularly monitoring their heart rate.And one quarter of adults use apps to see how much sleep they get each night.But according to a new survey, commissioned to encourage the use of smart meters in UK homes during Big Energy Saving Week and beyond, three quarters (76 per cent) of Brits admit they haven’t the foggiest how much energy they use at home.In total, adults spend 30 minutes every day checking their health, behaviour and finances on apps and devices – the equivalent of 183 hours or seven-and-a-half days per year.A quarter like to track areas of their life because it inspires them to improve, while 22 per cent say it make…