Those Who Check Their Credit Score Most Often
Are More Likely to Say Doing So Has a Positive Effect on Their
Credit Behavior
Three out of four consumers, 73 percent, say they are aware of
their credit standing and 61 percent say their credit standing is
important to them right now, but far fewer check their credit score
more than once a year, according to a recent independent survey
commissioned by Discover.
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170621005451/en/
According to a recent survey commissioned
by Discover, 3 in 4 consumers say they are aware of their credit
standing, but few check their credit score more than once a year.
(Graphic: Business Wire)
Asked how many times they checked their credit score within the
past year:
- 28 percent of respondents said they
didn’t check their score at all during the prior year
- 21 percent checked once
- 25 percent checked 2-3 times
- 12 percent checked 4-6 times
- 6 percent checked 7-11 times
- 8 percent checked 12 or more times
“Consumers have come a long way in recent years in building
awareness of their credit score and the ways in which it can impact
their day-to-day life,” says Ryan Scully, Discover’s vice president
of marketing. “The next step for many is to stay on top of their
credit standing throughout the year. By regularly checking their
score—if not monthly, then at least every couple months—consumers
can gain valuable insight into the factors that affect their score,
which in turn can help them make smarter financial decisions.”
The survey found that those who checked their credit score most
often during the prior year were more likely than those who checked
their score less often to say that checking their score had a
positive impact on their credit behavior, such as paying bills on
time, paying down loans and maintaining low balances on their
credit cards.
In fact, 70 percent of those who checked their credit score 12
or more times during the prior year, or an average of once per
month, say that checking their score had a positive impact on their
credit behavior. That figure compares to:
- 63 percent of those who checked their
score 7-11 times
- 52 percent of those who checked their
score 4-6 times
- 48 percent of those who checked their
score 2-3 times
- 31 percent of those who checked their
score 1 time
Those who checked their credit score most often were also more
likely to report improvements to their score. The survey found that
those who checked their score 12 or more times during the prior
year were nearly twice as likely than those who checked their score
just once to say that their score improved greatly or slightly over
that same time period, 61 percent to 32 percent, respectively.
Most Check Their Score to Improve or Maintain Their
Credit
Among those who checked their credit score during the prior
year—regardless of how many times—39 percent said the leading
motivation to check their score was to improve or maintain it. That
was followed by 18 percent who checked their score out of concern
for fraud or identity theft; 17 percent who checked out of
curiosity; and 12 percent who checked before making a major
purchase or applying for a loan or credit card.
Among those who had not checked their credit score during the
prior year, 48 percent said the main reason they didn’t was because
there was no need to check it. Other reasons included hesitancy to
share personal information, 18 percent; not wanting to pay to check
it, 17 percent; and not knowing how or where to check it, 13
percent.
“We launched CreditScorecard.com last year to ensure that
everyone, including those who are not Discover customers, have
access to their FICO® Credit Score1 for free,” says Scully. “The
platform is easy to use, simple to understand and provides insights
into many of the factors that contribute to one’s credit
score.”
Millennials Are Less Aware of and Place Less Importance on
Their Credit Standing Compared to Generation X and Baby
Boomers
Millennials place less importance on their credit standing than
other generations. Among millennial respondents, 54 percent say
their credit standing is important to them right now, compared to
63 percent of generation X and 65 percent of baby boomers.
Millennials are also significantly less aware of their credit
standing than their generational counterparts, as only 57 percent
of millennials say they are aware of their credit standing,
compared to 74 percent of generation X and 85 percent of baby
boomers.
While 80 percent of baby boomers and 62 percent of generation X
think their credit standing is within their control, only 51
percent of millennials think so.
However, millennials’ knowledge and understanding of their
credit scores may soon be on the rise. The survey found that among
those who checked their score within the past year, a higher rate
of millennials, 54 percent, say that checking their score had a
positive impact on their credit behavior, compared to 48 percent of
generation X and 41 percent of baby boomers.
“One of the best pieces of advice I can offer young consumers is
to get on top of their credit standing early and often,” says
Scully. “Don’t wait to check your credit score until just before
you’re ready to make a big purchase or apply for a loan. If you get
in the habit of checking your credit score at a young age, you can
start learning about and building the types of credit behaviors
that can, over time, contribute to a healthy credit score.”
About the Survey
All figures, unless otherwise stated, are from a YouGov Plc
survey conducted on behalf of Discover Financial Services. Total
sample size was 2,186 adults (ages 18+). Fieldwork was undertaken
March 15-16, 2017. The survey was carried out online. The
figures have been weighted and are representative of all U.S.
adults. The maximum margin of sampling error was ±2 percentage
points with a 95 percent level of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking
and payment services company with one of the most recognized brands
in U.S. financial services. Since its inception in 1986, the
company has become one of the largest card issuers in the
United States. The company issues the Discover card, America's cash
rewards pioneer, and offers private student loans, personal loans,
home equity loans, checking and savings accounts and certificates
of deposit through its direct banking business. It operates the
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
1FICO® Credit Scores provided by Credit Scorecard are based
on data from Experian and may be different from other credit
scores. See Discover.com/CreditScorecard to learn more. FICO is a
registered trademark of the Fair Isaac Corporation in the United
States and other countries.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170621005451/en/
Media ContactDiscover Financial ServicesJeremy
Borling224-405-4252jeremyborling@discover.com@Discover_News
Discover Financial Servi... (NYSE:DFS)
Historical Stock Chart
From Mar 2024 to Apr 2024
Discover Financial Servi... (NYSE:DFS)
Historical Stock Chart
From Apr 2023 to Apr 2024