Thursday, January 22, 2015WASHINGTON -- Eighty-five percent of Americans are aware they can check their credit report once a year at no charge and 60% have done so in the last 12 months, the American Bankers Association reported Wednesday.
The ABA hired Ipsos Public Affairs to conduct an online survey of 1,003 Americans ages 18 and older. Precision of the Ipsos survey, take between Dec. 11 and 14, is plus or minus 3.5%.
The survey is one aspect of the trade association’s efforts to encourage financial literacy, said Molly Wilkinson, executive director of the ABA Card Policy Council.
Fuller results of the survey can be found in The Credit Line (CLICK HERE), published by the ABA, which includes information on how the three major credit-monitoring agencies -- Experian, TransUnion and Equifax -- compile credit reports and what consumers should know when they examine their own credit histories.
The article found 44% of consumers are confused about the difference between a credit score and a credit report. They erroneously believe they are identical.
“Your credit score is akin to [a student’s] cumulative grade point average while a credit report more closely resembles your grades from every report card over the past seven years,” Wilkinson explained. “Credit scores reflect the information in an individual’s credit report, which is why we urge consumers to check their credit report for accuracy at least once a year.”
While 60% have checked their credit reports sometime in the last 12 months, 67% have checked their credit scores, the ABA survey found.
Credit scores reflect a person’s creditworthiness and are based on their credit reports, which indicate whether they pay their bills on time. Lenders use a credit score to determine whether to lend an applicant money and, if so, at what rate.
Published by The Business Journal, Youngstown, Ohio.
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