Americans aren’t using their financial knowledge, study says
Americans are becoming more savvy about their finances, but don’t apply their knowledge, a Lending Club survey reveals.
Almost 70 percent of those surveyed knew their credit score and 83 percent reported knowing the interest rate on their cards, according to the research. However, most respondents didn’t try to get a better interest rate even though most are confident they could.
“Knowing what to do is only half the battle,” Family Financial Network founder and Lending Club chief consumer advisor Jennifer Openshaw said. “The fact that people are paying twenty percent or more in interest is outrageous when alternative loans are available and credit card companies are willing to negotiate.”
The study also found that over 30 percent of respondents aren’t aware of what their credit score is. Consumers should know what their credit score is and how it affects them.
The Fair Issac Corporation says that 90 percent of major banks look at consumers’ FICO scores to make lending decisions. People can obtain a copy of their credit report by visiting one of the three major credit bureau websites or annualcreditreport.com for a free copy.