Consumers Confused About Credit

"Nearly half of U.S. consumers recently polled mistakenly thought that lenders, rather than consumers themselves, have the most control over their credit scores, according to a February FreeScore.com survey.

The survey of 300 respondents found that 47.2 percent thought that lenders control what credit score they have. Also, 64.7 percent of respondents thought the economy also could impact personal credit scores. However, results also revealed that more than four in five consumers (80.8 percent) understood that they are the ones with control over their credit scores and can exercise that control by following personal finance best practices like utilizing credit properly, not overspending, and living within ones means. Clearly there is some confusion among the respondents as to what factors dictate their credit scores.

The misperception, that lenders are in control, could be due in part to the fact that credit scores are getting considerably more scrutiny now than they did just a few years ago, as a larger pool of consumers need to apply for mortgages, refinancing, and other loan types including student and auto loans. As a result of the growing number of foreclosures and bankruptcies over the past several years, lenders have grown increasingly concerned about consumer credit scores, and weigh these heavily into the loan equation." [Read more]