Americans Unhappy with Credit Scores but Aim to Improve Them
Chase Bank’s recent Chase Slate 2016 Credit Outlook found that 32% of Americans are unhappy about their credit score, and 28% believe their score will prevent them from reaching their goals. Other key findings include:
Many are resolved to improve
Most respondents (59%) said their credit score plays an important role in their personal happiness, and they plan to take steps to improve it. In fact, 82% of those who are dissatisfied with their score would like to improve it over the next year, and all Americans (including those who are satisfied) want to improve their score this year. 35% have a plan in place, and 69% believe they are making daily choices that will improve their credit worthiness.
Fear is holding some people back
Some Americans are not checking their score because they are afraid of what they will find. In fact, 20% cited this as the reason, up from 13% last year. 40% of the respondents do not know their credit score, and 30% have not checked their score in the past year.
Women more insecure than men
36% of women are dissatisfied with their score, compared to 28% of men, and women are more likely to think their credit score will keep them from accomplishing their goals (31% vs. 24%). Married women believe their spouse’s credit score is better than their own (45% vs. 38%).
Millennials more satisfied than Gen Xers
While nearly half (43%) of Gen Xers are unhappy with their credit score, only 29% of Millennials are dissatisfied. However, Millennials feel more motivated to improve their score and are confident they can (41% vs. 35%).
“The tension Americans are feeling with their credit scores is actually very healthy because this singular metric can impact their ability to achieve and afford big financial goals. Your credit score impacts whether you can purchase a home or car, obtain a loan to go to school or start a business and qualify for better interest rates,” says personal finance expert and Chase Slate financial education partner Farnoosh Torabi. “You can often avoid paying high interest if you keep your credit in good standing. Take the time to understand the positive and negative factors impacting your credit score, identify areas for improvement and set a goal for yourself, especially if you anticipate needing a loan of any kind in the foreseeable future.”