Study: Americans have serious credit rating misconceptions
Although Americans know that credit rating is extremely important for their financial life, most do not seem to know how and from what it is formed. Writes about it Fox Business.
According to a new study from CompareCards, 62% of Americans did not know that the main factor determining their credit rating is the payment history. Millennials and representatives of generation X have more misconceptions about the components of a credit rating, compared with older respondents.
There are a number of indicators that are taken into account when calculating a credit rating, and for each person, the importance (share) of each category will vary depending on the length of the credit history.
Other indicators that affect non-credit ratings, in addition to the payment history, include the length of the credit history, credit structure and new loans.
Many Americans have other misconceptions regarding their credit scores. For example, more than 40% of people mistakenly believe that checking the credit rating too often can harm it.
At the same time, about 20% of respondents said they were ready to stop buying alcohol for the rest of their lives, if this would mean receiving 800 credit rating points forever.
On the subject: 7 unexpected mistakes that can lower your credit rating
According to Experian, the average credit rating of Americans in the second quarter of 2019 was 703, although this indicator varies significantly depending on age.
Americans ages 20 to 29 had the lowest average score at 662, while people age 60 and older had 749. The state with the highest average credit score (733) in the second quarter of 2019 was Minnesota.
The average credit rating for 2018 was 704 points.
Read also on ForumDaily:
How to file a tax return yourself: step-by-step instructions
7 risks of tax fraud without even knowing it
From fine to jail time: what happens if you don't pay taxes
List of benefits and allowances for which an immigrant may be recognized as a 'social burden'
Subscribe to ForumDaily on Google NewsDo you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.