Consumer Survey About Credit Scores

Here's the link to a PDF version of the press release about a recent survey of consumers' knowledge about credit reports and scores. The survey was conducted by ORC on behalf of the Consumer Federation of America and Providian.

The study found that consumers are wising up on credit-related issues, but there is still a lot of misunderstanding. The survey found that 76% of consumers believe that they have the right to obtain their credit score for free each year. The truth is that the credit score is only available for a fee, unless they apply for a loan, which will sometimes allow them to get a free credit score. Otherwise, the credit report is free, but the score is an extra fee.

According to the press release, CFA and Providan think all consumers should know the following facts about credit scores:

• Scores reflect only one's own past credit history, not personal characteristics such as age and gender or level of income. Over time consumers have the ability to control these scores.
  
• Low scores could not only cost you up to thousands of dollars a year in additional finance charges, but also deny you access to credit, insurance, electric and telephone service, a rental unit, and even a job.
  
• Consumers with scores below 600 are typically charged relatively high, “subprime” loan rates, while those with scores above 700 are usually charged relatively low “prime” rates, and those with scores above 760 are charged the lowest rates.
  
• Consumers can purchase credit scores (credit reports are free) from all three credit bureaus for $44.85 by contacting Fair Isaac (myFICO.com), or individual reports and scores from the three bureaus -- TransUnion (www.transunion.com), Experian (www.experian.com), Equifax (www.equifax.com) -- for as little as $14.50. One can receive a TransUnion-derived credit score monthly for free if one holds a Providian credit card. Mortgage applicants can obtain their score for free from the lender.
  

CFA and Providian have created a web-based quiz to help us all better understand credit scores, available at www.consumerfed.org/score