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CREDIT SCORE KNOWLEDGE 2016Consumer Survey: Summary … · What Consumers Can Do to Raise their...
Transcript of CREDIT SCORE KNOWLEDGE 2016Consumer Survey: Summary … · What Consumers Can Do to Raise their...
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
CREDITSCOREKNOWLEDGE2016ConsumerSurvey:SummaryResults
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
SurveyObjectives
• Measureconsumerknowledgeofcreditscoresaspartofanannualtrackingstudy
• Use2016results(sixthinstallment)toaddtoknowledgegainedin2011-2015
• Reportonchangesinconsumerknowledgeasameanstospotlightneedforpersonal
financeeduca.onintheareaofcreditscores
• Iden.fydemographicdis.nc.onswithinthesurveydata,withaneyetowardrefining
outreachwitheduca.onalmaterialsandmessaging
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Methodology
• TelephonesurveyconductedinApril2016
• 18ques.onsadministeredbyORCInterna.onal
• Na.onalsampleof1,005adults
• 501menand504women
• 18yearsofageandolder• Livinginprivatehouseholdsinthecon.nentalUnitedStates
• In2011and2012,CFAandVantageScoreSolu.onsundertooksimilarsurveysof
consumerknowledge,butresponsesfromthosesurveyscannotreliablybecompared
withthosefrom2013-2015becauseoftwochangesthatmayaffectthecharacterof
thesamplepopula.ons:In2013-2016,unlike2011and2012,callsweremadetocell
phonesaswellastolandlinephonesandaXerrespondentsansweredeachques.on,
theywerenotgiventhecorrectanswers.Eventhoughthe2011and2012surveys
weredesignedsothattheseanswerscouldnothelpwithsubsequentques.ons,
thesesurveysrequiredmuchmore.mefromrespondents,whichmayhave
influencedtheirresponses.
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
ExecutiveSummary
Thesixthannualcreditscoreknowledgesurveyfoundthatalargemajorityofconsumers(over80%)knowthebasicfactsaboutcreditscores:
• Creditscoresareusedbymortgagelenders(88%)andcreditcardissuers(87%).
• Keyfactorsusedtocalculatecreditscoresaremissedpayments(91%),personal
bankruptcy(86%),andhighcreditcardbalances(85%).
• Ethnicoriginisnotusedtocalculatethesescores(believedbyonly12%).
• 700isagoodcreditscore(81%).
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ExecutiveSummary(cont’d.)
Thena@onalsurveyalsofoundthatmanyconsumersdonotunderstandcreditscoredetailswithimportantcostimplica@ons:
• Consumersgreatlyunderes.matethecostoflowcreditscores.Only25percentknow
thatalowscore,comparedtoahighscore,typicallyincreasesthecostofa$20,000,
60-monthautoloanbymorethan$5,000.
• Asignificantminoritydonotknowthatcreditscoresareusedbynon-creditors,oXen
inwayswithfinancialimplica.onsforconsumers:Onlyabouthalf(53%)knowthat
electricu.li.esmayusecreditscores(forexample,indeterminingtheini.alrequired
deposit),whileonlyabouttwo-thirdsknowthatthesescoresmaybeusedbyhome
insurers(66%),cellphonecompanies(68%),andlandlords(70%).
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
ExecutiveSummary(cont’d.)
Thena@onalsurveyalsofoundconfusionamongmanyconsumersaboutthefactorsthatdeterminecreditscoresandtheobliga@onslendershavetoinformthemabouttheirscores:
• Roughlytwo-fiXhsthinkthatmaritalstatus(38%)andage(45%)areusedinthe
calcula.onofcreditscores.Whilethesefactorsmayinfluencetheuseofcredit,how
creditisuseddeterminescreditscores.
• Onlyabouthalfofconsumers(51%)knowwhenlendersarerequiredtoinform
borrowersoftheiruseofcreditscores-aXeramortgageapplica.on,whena
consumerdoesnotreceivethebesttermsonaconsumerloan,andwhenevera
consumerifturneddownforaloan.
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TheMostImportantThingsConsumersShouldKnowAboutCreditScores
• Creditscoresareimportantinthattheyinfluencewhetherconsumerscanpurchasea
widerangeofimportantservicesand/oratwhatprice.
• Anindividualhasmanydifferentcreditscores,whichareeithergenericorlender-
based.
• Genericcreditscoresareavailablefrommanysources--notjustFICOandthethree
creditbureaus.
• Mostscores,however,arebasedoninforma.oninacreditreportatoneofthethree
bureaus,althoughsomewebsitesallowconsumerstoes.matetheirscoreby
answeringques.onsabouttheircredituse.
• Scoresbasedoncreditreportsfromoneofthethreemaincreditbureaus--Experian,
Equifax,andTransUnion--mayu.lizeeitherofthetwomainscoringsystems,FICOor
VantageScore.FICOscoringmodelsandtherecentlyreleasedVantageScore3.0
modelgeneratescoresinarangefrom300to850.EarlierVantageScoremodelsusea
rangeof501to990.
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
TheMostImportantThingsConsumersShouldKnowAboutCreditScores
• Consumerbehaviorstronglyinfluencescreditscores,especiallywhetherpayments
aremadeon.me,andit'seasiertolowerthantoraisescores.
• Carelesslatepaymentsonacoupleofcreditcardsoronamortgagemaytakeayearofon-
.mepaymentstorestoreone'soldscores.
• Theaccuracyofinforma.oninone'screditreportsatthethreebureaus--Experian,
Equifax,andTransUnion–canalsosignificantlyinfluencecreditscores.
• Youcanaccessthesereportsforfreethroughthewebsite–www.AnnualCreditReport.com--
orbycalling877-322-8228,andshouldcertainlydosobeforeseekingamortgageorcarloan.
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TheMostImportantThingsConsumersShouldKnowAboutCreditScores
• Evenifyouhavehighcreditscores,andespeciallyifyouhavelowerones,itisessen.altocomparison-shopforcredit.
• Majorlendersusesomewhatdifferentcriteriaintheirowncreditscores,andevenwhenthey
usethesamescore,theymayassigndifferentriskstoit.
• Forexample,usingthesamescoreforanindividual,onelendermayplacethatpersonina
higher-risksubprimecategorywhileanotherlendermayassignthatpersontoalower-risk
(andlowercost)primecategory.
• Beveryskep.calofcreditrepaircompanies.
• Consumerprotec.onofficialsagreetheyoXenoverpromise,chargehighprices,andperform
services,suchascorrec.ngcreditreportinaccuracies,thatconsumerscoulddothemselvesby
simplycontac.ngthelenderandthecreditbureaus.
• Creditrepair“services,”whichpromiseaquickimprovementinyourcreditscore,shouldnot
beconfusedwithlegi.mate,cer.fiedcreditcounselors.Creditcounselors,whoseservicesare
oXenavailableatlimleornocost,canhelpyoudevelopalong-termplanforimprovingyour
creditprofile,withafocusondevelopingandmaintaininggoodfinancialhabits.
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
WhatConsumersCanDotoRaisetheirCreditScores
Consumerscanraisetheircreditscoresinmanyways:
• Paybillson.meconsistently,everymonth.
• Avoidmaxingout,orevencomingclosetomaxingout,creditcardsorotherrevolving
creditaccounts.(VantageScoreSolu.onsrecommendskeepingoutstandingcharges
atorbelow30percentofyourcreditlimit.)
• Paydowndebt,don’tjustmoveitaroundfromoneaccounttoanother.
• Avoidopeningmul.plenewaccountsatthesame.me,orinquicksuccession.
• Checkcreditreportsregularly(atleastonceayear,atthefreeAnnualCreditReport.comwebsite).
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
FindtheCreditScoreQuizOnline
• Thenewlyenhancedwebsiteallowsconsumerstotesttheirknowledgeoncreditscores
throughaninterac.ve12-ques.onquiz
• Thesiteisafuntoolthatdeliversanswerstoeachques.onwithexplana.onssothatconsumerscaninformthemselvesaboutthelatestcreditscoreinforma.on.
• Op.mizedforsmartphones,tablets,andPCs
• Morethan62,000peoplehavecompletedthequiz,including
morethan17,000inthepastyear.
• Tryittoday:www.CreditScoreQuiz.org
• AlsoavailableinSpanish:CreditScoreQuiz.org/Espanol
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Whatthepressaresaying…• Headline:Howcanyouboostacreditscore?Manyhavenoclue
• DetroitFreePressAuthor:SusanTompor
Excerpt:Whatyoudon'tknowcanhurtyourcreditscore.…Formanyconsumers,it'sallaboutge<ngabe=ereduca>on.Andtherearesomeonlineop>onsforlearningmoreonhowtobuildabe=ercreditscore.Oneop>onisCreditScoreQuiz.orgfora12-ques>onquiz.Thesiteisatoolthat'sofferedthroughtheConsumerFedera>onofAmericaandVantageScoreSolu>ons..
• Headline:Areyoudumbaboutcreditscores?Trythisquiz• ChicagoTribune
Author:GregoryKarp
Excerpt:Scoresareabigdeal.Aconsumerwithlowcreditscorescouldpay$5,000moreininterestoverthelifeofatypicalfive-yearcarloanthanaconsumerwithhighscores,whichhighlightstheneedtoknowabouttheoTen-confusingtopic,consumeradvocatessaidMonday.…Theonline12-ques>onquiz,newlyredesignedandreleasedMonday,isatcreditscorequiz.organdwasdevelopedbytheConsumerFedera>onofAmericaandVantageScoreSolu>ons.
• Headline:FiveCreditScoreMisconcep@onsThatCanCostYou• Forbes.com
Author:AshleaEbeling
Excerpt:Keyfactorsaboutcreditscorescon>nuetobewidelymisunderstood,andthemisconcep>onsarepoten>allycos>ngconsumerstensofthousandsofdollars,accordingtoaconferenceheldtodaybytheConsumerFedera>onofAmericaandVantageScoreSolu>ons,aFICOcompe>tor…Wanttoknowmore?Takethe18-ques>onCFA/VantageScorequiz(withdetailedanswers)atwww.creditscorequiz.org.
• Headline:NuancesofCreditScoringS@llEludeConsumers• NYTimes.com
Author:AnnCarrns
Excerpt:Consumerss>llhavemanymisunderstandingsaboutthedetailsofcreditscoring,liketheimpactofhavingseveralinquiriesontheirreportaroundthesame>me,accordingtheConsumerFedera>onofAmerica.…Toseehowmuchyouknowaboutcreditscores,andhowtoimprovethem,answertheques>onsatcreditscorequiz.org. 12
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
SURVEYQUESTIONS&RESULTS
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on1:Doyouconsideryourknowledgeofcreditscorestobeexcellent,good,fair,
orpoor?§ Excellent
§ Good
§ Fair
§ Poor
§ Don’tKnow/Refuse
14
Excellent
17%
Good
33%Fair
30%
Poor
19%
Don'tKnow/Refused
1%
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on2:Whichofthefollowingmightusecreditscores?§ ElectricU.lity
§ CellPhoneCompany
§ HomeInsurer
§ Landlord
§ CreditCardIssuer
§ MortgageLender
§ AllofThese
§ Don’tKnow
Explana@on:Theansweris‘AllofThese’.Alloftheseserviceprovidersmayusecreditscorestohelp
themdecidewhethertosellaloan,provideaservice,ordetermineadepositordownpayment.
15
36
671
298
581
570
401
365
383
227
0 100 200 300 400 500 600 700 800
Don'tKnow
Totalincomplete/incorrectresponses
Allofthese(correctresponse)
MortgageLender
CreditCardIssuer
Landlord
HomeInsurer
CellPhoneCompany
ElectricU.lity
NumberofResponses(Mul@pleselec@onspermiUed.)
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on3:Ona$20,000,60-monthautoloan,abouthowmuchmorewouldaborrowerwithalowcreditscorepaythanaborrowerwithahighscore?Wouldyousay...§ Under$1,000
§ $1,000-$3,000
§ $3,000-$5,000
§ Morethan$5,000
§ Don’tKnow
Explana@on:Theansweris‘Morethan$5,000’.Onatypicalautoloanfromabank,aborrowerwithalow
scorewouldbechargedahigherinterestrateandlikelypayatleast$5,000more.
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54
704
246
298
283
123
0 100 200 300 400 500 600 700 800
Don'tKnow
Totalincorrectresponses
Morethan$5,000(Correctresponse)
$3,000-$5,000
$1,000-$3,000
Under$1,000
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on4:Whichofthefollowingdoesacreditscoretypicallymeasure?§ AutudeTowardCredit
§ KnowledgeofConsumerCredit
§ FinancialResourcestoPayBackLoans
§ AmountofConsumerDebt
§ RiskofNotPayingaLoan
§ Don’tKnow
Explana@on:Theansweris‘RiskofNotPayingaLoan’.Theotherfactorsmayinfluencethisrisk,butitisthe
riskitselfthatacreditscoretriestomeasure.
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36
541
428
209
219
68
44
0 100 200 300 400 500 600
Don'tKnow
Totalincorrectresponses
RiskofNotPayingaLoan(Correctresponse)
AmountofConsumerDebt
FinancialResourcestoPayBackLoans
KnowledgeofConsumerCredit
AutudeTowardCredit
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Explana@on:Thecorrectresponsesarethethreefactorsrelatedtocredituse:‘MissedPayments’,‘High
CreditCardBalances’,and“PersonalBankruptcy’.
Ques@on5:Whichofthefollowingfactorsareamongthoseusedtocalculateacreditscore?
§ EthnicOrigin§ Mar.alStatus
§ APerson’sAge§ HighBalancesonCreditCards§ PersonalBankruptcy§ MissedPayments
§ Don’tKnow
18
19
735
270
917
864
853
452
385
151
0 100 200 300 400 500 600 700 800 9001000
Don'tKnow
Totalincomplete/incorrectanswers
Totalwhoiden.fiedonlyallcorrectanswers
MissedPayments(Correctresponse)
PersonalBankruptcy(Correctresponse)
HighBalancesonCreditCards(Correctresponse)
APerson'sAge
MaritalStatus
EthnicOrigin
NumberofResponses(Mul@pleselec@onspermiUed)
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on6:Whocollectstheinforma@ononwhichcreditscoresaremostfrequentlybased?Wouldyousay...
§ IndividualLenders§ FederalGovernment
§ FICOandVantageScoreSolu.ons§ ThreeMainCreditBureaus
§ Don’tKnow
Explana@on:Thecorrectansweristhe‘ThreeMainCreditBureaus,’whichcollectinforma.ononthecredit
useofmorethan200millionAmericansandmakeitavailableincreditreports.FICOandVantageScore
Solu.onshavedevelopedthemostpopularscoringsystemsforusingcreditreportstocomputecredit
scores.
19
44
274
687
65
101
108
0 100 200 300 400 500 600 700 800
Don'tKnow
Totalincorrectresponses
ThreeMainCreditBureaus(Correctresponse)
FICOandVantageScoreSolu.ons
FederalGovernment
IndividualLenders
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on7:DoeseachconsumerhavejustONEgenericcreditscore?
§ Yes§ No§ Don’tKnow
Explana@on:Theansweris‘No’.Genericscoresvarydependingonthespecificcreditreportandscoringmodelusedaswellasthepointin.mewhenthescoreiscomputed.Itispossible,forexample,thatifone
obtainedgenericcreditscoresfromseveraldifferentsources,thescoreswouldalldiffer.
20
37
316
689
279
0 100 200 300 400 500 600 700 800
Don'tKnow
Totalincorrectresponses
No(Correctresponse)
Yes
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on8:Whichofthefollowingisusuallyagoodcreditscore?
§ 400§ 500§ 600§ 700§ Don’tKnow
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Explana@on:Scoresof700andabove–themostcommoncredit-scoringscalerangeis300-850–are
usuallyconsideredbylenderstoindicatelowcreditrisk,whilescoresbelowthemid-600sareoXen
consideredtoindicatesomeorgreatrisk.Thus,thosewithlowscoresaremuchmorelikelytobedenied
creditorchargedhigh,subprimerates.However,itisimportanttorecognizethatscoringmodelsmayuse
otherscales,soit’sessen.altoknowwhereascorefallsonitsmodel’sscalerange.
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192
813
97
44
32
0 100 200 300 400 500 600 700 800 900
Don'tKnow
Totalincorrect/incompleteresponses
"700"(Correctresponse)
"600"
"500"
"400"
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
• AXeraConsumerApplies
foraMortgage
§ WheneveraConsumeris
TurnedDownforaLoan
§ OnAllCreditCard,Auto&OtherConsumerLoans
whenaconsumerdoesn’t
receivethebestterms
and/orlowestinterest
rateavailable
§ AllofThese§ NoneofThese§ Don’tKnow
Explana@on:Thecorrectansweris‘AllofThese’.Federallawrequiresmortgagelenderstoinformapplicants
ofthegenericcreditscoreorscoresthelendersuseinevalua.ngtheloanapplica.ons.Asof2011,italso
requiresmortgageandconsumerlenderswhousegenericscoringmodelstosettermsfortheirserviceas
wellastodiscloseacreditscoreorscoresusedtoreachthatdecisionwhenaconsumerisnotofferedthe
lowestinterestrateorbesttermsavailable.
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Ques@on9:Whenarelenderswhousegenericcreditscoresrequiredtoinformborrowersofthecreditscoreusedinthelendingdecision?
17
427
45
516
177
244
268
0 100 200 300 400 500 600
Don’tKnow
Totalincomplete/incorrectresponses
NoneofThese
AllofThese(Correctresponse)
OnAllCreditCard,Auto&OtherConsumerLoans
whenaconsumerdoesn'treceivethebestterms
and/orlowestinterestrateavailable
WheneveraConsumerisTurnedDownforaLoan
AXeraConsumerAppliesforaMortgage
NumberofResponses(Mul@pleselec@onspermiUed)
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on10:Whichofthefollowingac@onshelpsaconsumerraisealowscoreormaintainahighone?
§ MakeAllLoanPaymentsonTime
§ UseCreditCardKeepingtheBalanceUnder25%oftheCreditLimit
§ AvoidOpeningSeveralCreditCardAccountsattheSameTime
§ AllofThese§ Don’tKnow
Explana@on:Thecorrectansweris‘AllofThese,’thoughittakesmuchlongertoraisealowscorethan
lowerahighone.Themake-upofeachindividual’screditfilewillimpacttheamountofchangeseenina
creditscore.Forexample,someonewithagoodscoremayloseupto30pointswhenpaymentsaremissed
onmul.pleaccountslikecreditcardsandautoloansorpossiblymorethan100pointswhenamortgage
paymentismissed.Andtheymaygainsomeofthesepointsbackbymakingallmortgage,car,andcredit
cardpaymentson-.meforsixmonths.
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12
387
606
126
186
356
0 100 200 300 400 500 600 700
Don'tKnow
Totalincomplete/incorrectanswers
AllofThese(Correctresponse)
AvoidOpeningSeveralCreditCardAccountsattheSameTime
UseCreditCardKeepingtheBalanceUnder25%oftheCreditLimit
MakeAllLoanPaymentsonTime
NumberofResponses(Mul@pleselec@onspermiUed)
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on11:Whenwillmul@pleinquiriesaboutge`ngamortgageorautoloanorloansfromlenderslowerone'sFICOorVantageScorecreditscore?
§ EachTimeOneMakesanInquiry
§ OnlyWhenOneMakesAtLeastFiveInquiries
§ LoanInquiriesWillNeverLowerYourScore
§ NeverDuringa1-2WeekWindow
§ Don’tKnow
Explana@on:Theansweris‘NeverDuringa1-2WeekWindow’.Inquiriesduringthisperiodaretreatedas
oneinquirybyFICOandVantageScorecreditscoringmodels,andusuallybyotherscoringmodels.An
inquiryaXerthiswindowhasclosedmaybeconsideredasecondinquiry,whichcouldhaveanega.ve
impactonaconsumer’screditscore.Butkeepinmindthatmul.pleinquiriesrarelyloweraconsumer’s
creditscoreasmuchasamissedloanpayment.
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67
856
81
271
216
369
0 100 200 300 400 500 600 700 800 900
Don'tKnow
Totalincomplete/incorrectresponses
NeverDuringa1-2WeekWindow(Correctresponse)
LoanInquiriesWillNeverLowerYourScore
OnlyWhenOneMakesAtLeastFiveInquiries
EachTimeOneMakesAnInquiry
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on12:Howimportantisittochecktheaccuracyofyourcreditreportsatthethreemaincreditbureaus?
§ VeryImportant
§ SomewhatImportant
§ NotVeryImportant
§ Don’tKnow
Explana@on:Thecorrectansweris‘VeryImportant’.Lendersmayhaveprovidedinaccurateinforma.on
orfailedtoaddaccurateinforma.onaboutyourpaymenthistorytoyourcreditreports.Andsincemany
consumershavesimilarnames,evenaccurateinforma.onmayhavebeenaddedtothewrongfile.Eachof
thethreemaincreditbureaus – Experian,Equifax,andTransUnion–willprovideafreecopyofyourcreditreportonceayearuponyourrequest.Aneasywaytogetthesereportsistovisit
www.annualcreditreport.comorcall877-322-8228.
25
5
267
733
194
72
0 100 200 300 400 500 600 700 800
Don'tKnow
Totalincorrectresponses
VeryImportant(Correctresponse)
SomewhatImportant
NotVeryImportant
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Explana@on:Nearlyallmainstreamloansinvolveacheckoftheapplicant’screditscore,butfederallysponsored
studentloansdonot.Staffordloans(issueddirectlytostudentsthroughtheU.S.DepartmentofEduca.on)and
Perkinsloans(issuedbyschoolsfromapooloffederalfunds)requirenocreditchecksatall.Athirdfederalstudent
loantype,thePLUSLoan(offeredtostudentsandparents)doesnotrequireacreditscore,butitdoesexclude
applicantswith“adversecredithistory”includingdefaultedloansandbankruptcywithinthepastfiveyears.
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NumberofResponses(Mul@pleselec@onspermiUed)
Ques@on13:Whichofthefollowingdoesn'tusecreditscores?
§ Peer-to-peerormarketplaceloan
§ Privatestudentloan§ Mortgageloan
§ Creditcardaccount§ Personalinstallmentloan
§ Federalstudentloan§ Allofthese§ Noneofthese§ Don’tKnow
17
909
79
132
65
408
360
342
326
373
386
0 100 200 300 400 500 600 700 800 900 1000
Don'tknow
Totalincorrectresponses
CorrectlyID'edonlythecorrectresponse(federalstudentloan)
Noneofthese
Allofthese
Federalstudentloan(Correctresponse)
Personalinstallmentloan
Creditcardaccount
Mortgageloan
Privatestudentloan
Peer-to-peerormarketplaceloan
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on14:Whenyoucannotresolveacomplainttoacreditbureauorlenderaboutyourcreditreportorcreditscoretoyoursa@sfac@on,whichofthesefederalgovernmentagenciesisbestsuitedtohelpyouresolvetheproblem?Wouldyousay...
§ U.S.DepartmentofJus.ce
§ TheFederalReserveBoard§ U.S.FederalTradeCommission
§ U.S.ConsumerFinancialProtecQonBureau
§ Don’tKnow
Explana@on:TheConsumerFinancialProtec.onBureaunowhelpsconsumersresolvemanytypesof
complaintsaboutcreditreportsandcreditscores.Butbeforefilingacomplaintwiththem
(www.ConsumerFinance.gov/Complaint),theBureaurecommendsfilingyourcomplaintandobtaininga
responsefromthecreditbureauorothercompanywithwhichyouaredealing.
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NumberofResponses
66
220
719
87
57
75
0 100 200 300 400 500 600 700 800
Don'tknow
Totalincorrectresponses
U.S.ConsumerFinancialProtec.onBureau(Correctresponse)
U.S.FederalTradeCommission
TheFederalReserveBoard
U.S.DepartmentofJus.ce
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on15:Howodenarecreditrepaircompanieshelpfulincorrec@nganycreditreporterrorsandtakingothermeasurestoimproveone'screditscore?Wouldyousay...
§ Always§ Usually§ OccasionallyorNever§ Don’tKnow
Explana@on:Expertsdisagreewhetherthecorrectansweris‘Occasionally’or‘Never’.However,most
agreethatcreditrepaircompaniesoXenoverpromise,chargehighpricesandperformservicesthat
consumerscoulddothemselvesbyjustcontac.ngthelenderandthecreditbureaus.
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63
400
542
304
96
0 100 200 300 400 500 600
Don'tKnow
Totalincorrectresponses
Occasionallyornever(Correctresponse)
Usually
Always
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on16:Inthepastyear,haveyouobtainedorreceivedanyofyourcreditscores?
§ Yes§ No§ Don’tKnow
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Yes
54%
No
45%
Don'tKnow
1%
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on17:Haveyoueverobtainedacopyofyourfreecreditreports?
§ Yes,inthepastyear§ Yes,1-3yearsago§ Yes,morethan3yearsago
§ No,Ihaveneverobtainedacopy§ Don’tknow
30
8
328
158
192
319
0 50 100 150 200 250 300 350
Don'tknow
No,Ihaveneverobtainedacopy
Yes,morethan3yearsago
Yes,1-3yearsago
Yes,Inthepastyear
NumberofResponses
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
Ques@on18:Inthenext12months,doyouintendtoapplyforacreditcard,mortgage,orautoloan?
§ Yes§ No§ Don’tKnow
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Yes
22%
No
76%
Don'tKnow
2%
©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
AbouttheSurveySponsors
ConsumerFedera.onofAmerica(CFA)isanonprofitassocia.onofmorethan250
nonprofitconsumergroupsthatwasestablishedin1968toadvancetheconsumer
interestthroughresearch,educa.on,andadvocacy.LearnmoreaboutCFAat
consumerfed.org.
VantageScoreSolu.ons,LLCistheindependentlymanagedcompanythatownsthe
intellectualpropertyrightstotheVantageScorecreditscoringmodels,includingthe
recentlyannouncedVantageScore3.0model,whichprovidesupto25percent
predic.veimprovementoverearliermodelsandhastheabilitytoformulatescoresfor
30–35millionpreviouslyunscoreableconsumers.Ini.allydevelopedbyAmerica’s
threena.onalcreditrepor.ngcompanies(CRCs)—Equifax,ExperianandTransUnion
—VantageScoreSolu.ons’highlypredic.vemodelsuseaninnova.ve,patentedand
patent-pendingscoringmethodologythatprovideslendersandconsumerswithmore
consistentcreditscoresacrossallthreena.onalcreditrepor.ngcompanies.
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©ConsumerFedera.onofAmericaandVantageScoreSolu.ons,LLC,2016
ContactInfo
ConsumerFedera.onofAmerica
1620IStreet,NW-Suite200
Washington,DC20006
202-387-6121
VantageScoreSolu.ons,LLC
P.O.Box141
Atlan.cStreetPostOffice
Stamford,CT06901
203-363-2199
33