Equifax Survey Shows Most Consumers Savvy About Credit Scores

Paying bills on time is crucial to maintaining a good credit score, and a new survey from Equifax shows that most Americans understand that. During Financial Literacy Month, which is April of every year, Equifax commissioned a survey to determine the financial literacy of consumers when it comes to credit and other common topics.

The survey asked just over 1,000 adults across the country about issues ranging from identity theft to taxes and real estate. When it came to credit, people said that their credit rating has impacted their ability to get a good interest rate on a loan (19%), rent an apartment (7%), turn on their utilities in their home or apartment (5%), and get a job (4%).

People seemed to be aware that their credit score would have a major effect on their lives, in these regards and even more. Diane Moogalian, vice president of operations at Equifax, said that people should be sure to review their credit regularly. “Getting into this health financial habit may provide consumers with insight into factors that may need to be addressed and could possibly help one address identity theft.”

Free credit reports available once a year

People can access their credit report for free each year, through www.annualcreditreport.com. The Fair Credit Reporting Act (FCRA) guarantees folks a free copy of their credit report every twelve months. Eighty-one percent of survey respondents said they were aware that they could get their credit report for fee on an annual basis.

The free credit report includes three reports; one from each of the major credit bureaus. Those are Equifax, Experian, and TransUnion. FICO scores are separate from credit reports, and are increasingly available for free through various credit card issuers.

Between checking the free credit reports each year and keeping an eye on their FICO scores, folks can make sure their credit remains healthy. The five factors to a good credit score are: payment history—making sure all payments are made on time, debt to credit ratio—making sure you keep your total debt to less than 30% of your total available credit, length of credit history, different types of credit utilized, and amount of new credit granted or applied for.

By keeping accounts open, keeping balances low, and making all payments on time, most folks can maintain a healthy credit score. Having a mortgage in addition to a credit card looks even better on your report. And carefully applying to only a few credit cards will keep your new credit factor in the healthy zone.