In spite of alternative credit score initiatives by J.P. Morgan Chase, Wells Fargo and U.S. Bank, the traditional credit score system is not going away anytime soon, and consumers want help in understanding how to better manage and improve their scores.
Consumers today believe a good credit score and an established credit history are essential to getting loans and credit cards. PYMNTS research found that almost two-thirds (62 percent) of consumers want to improve their credit scores but do not know how to go about doing so. This even includes consumers who have above-average credit scores. For instance, those with above-average credit scores are unsure whether having one line of credit or multiple lines of credit is better for their scores, or they are unsure of how spending close to their credit card limits affects their scores.
The Credit Score Literacy And Building Credit Report, a collaboration between PYMNTS and Elan (a division of U.S. Bank), explores consumers’ perceptions and plans around improving their credit scores. We surveyed a census-balanced sample of 2,053 consumers and found that they have interest in and ascribe value to credit card issuers that provide tools that can help both monitor and improve their credit scores.
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