Survey: 27% of consumers do not review their credit report annually
It’s nearly automatic that one of the first things a finance company does to examine an applicant is check the individual’s credit report.
But consumers doing that process on their own doesn’t appear to be so habitual, as a new survey conducted by BadCredit.org found that 27% of respondents do not review their credit report at least once a year.
The financial resource helping consumers with subprime credit make informed decisions said its study captured insights from 500 adults in the United States to sheds light on their understanding of financial concepts, credit management practices and how they are navigating the current economy.
“This latest survey reveals a concerning number of Americans are not practicing financial wellness or keeping up with basic financial habits such as credit management,” said Erica Sandberg, a consumer finance expert with BadCredit.org. “Financial education often takes a backseat in our society, which leads to learning about the fundamentals, and how to handle tough situations once we’re already in trouble.
In fact, not checking your credit score may seem minor but it can lead to bigger problems, including missed opportunities to improve your financial situation or a chance to address issues as they arise, like fraud,” Sandberg continued in a news release.
The survey indicated common areas where respondents had little to no knowledge about foundational elements essential to a healthy credit score, in addition to how they are navigating the current economy riddled with high interest rates and inflation.
Key findings included:
—Low credit utilization: Nearly 26% of respondents do not know the benefits of maintaining a low credit utilization ratio on their credit cards. The findings illustrate an opportunity for individuals to seek additional education on the benefits and pitfalls of credit card usage.
—Tackling the cost of living: As the cost of living continues to increase, 75% of respondents revealed they have reduced their spending, and nearly 41% admitted to withdrawing from savings to keep up. This response further emphasizes the financial sacrifices and pitfalls consumers are making to stay afloat in today’s economy.
—Financial pivoting: Nearly 72% of respondents revealed that the current state of the economy has made them pivot their financial plans or goals. The finding shows that a significant number of Americans have reassessed or veered off the path of their financial journey during turbulent times.
“The findings of this survey should serve as an opportunity; rather, than a sign of discouragement,” said Bobbi Rebell, a personal finance expert at BadCredit.org. “The bottom line is we can learn something new about money each day, and it’s encouraging to see how much opportunity exists to help others make better-informed decisions and determine the right next steps so they can get back on track with their financial goals — especially in today’s economy.”