Majority of Americans Are Actively Working on Their Credit Scores

Majority of Americans Are Actively Working on Their Credit Scores

July 31, 2018         Written By Bill Hardekopf

According to a new study from Discover, 61% of U.S. consumers are “actively trying to improve their credit score.” The youngest adults in the survey, ages 18 to 21, are making the biggest effort, with 87% saying they are working on their credit scores. Millennials followed closely at 83%, compared to 66% of Gen Xers and 34% of Baby Boomers.

Across all generations, 85% of respondents said they were aware of their credit scores, up from 73% last year. Eighty-two percent said they check their credit scores at least once a year, which is 10% higher than last year. In addition, 12% of consumers said they check their credit score 12+ times a year, compared to 4% last year.

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Of the Americans who checked their score at least once a year, 56% said doing so had a positive impact on their credit. Watching debt decline and bills being consistently paid on time is motivation to maintain good financial habits.

A separate study from LendingTree shows high credit scores save Americans an average of $5,629 in credit card interest. People with fair credit scores had an average APR of 24.49%, compared to 14.49% for ‘very good’ credit.

So commit yourself to doing everything possible to raise your credit score. You can certainly increase your credit score for free. Experian Boost™ helps by giving you extra credit for the utility and mobile phone bills you’re already paying. (Results may vary; see website for details.)

The increase in credit awareness may be largely due to the prevalence of free credit scores. Companies like Capital OneChase and Discover offer free credit scores for everyone, even if they do not have an account with the company.  Americans now have easy access to their credit information, allowing them to make real-time decisions about debt repayments.

It is important to note that free credit scores are not always accurate. They may not reflect recent transactions, and may not represent information from all credit bureaus. If you are going to monitor your credit score, use this data as a guideline, not an exact figure. Identify the areas of your credit that need the most improvement, and take action to repair those issues.

The information contained within this article was accurate as of July 31, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.