Study Shows Americans Need To Get Financially Fit

Study Shows Americans Need To Get Financially Fit

Study Shows Americans Need to​ Get Financially Fit
Most Americans lack basic understanding when it​ comes to​ their credit score and personal finance, according to​ the results of​ a​ survey by consumer advocacy group Consumer Action and financial services provider Capital One.
The survey polled 1,002 American adults. it​ gauged respondents knowledge of​ the basics of​ personal finance like budgeting, saving habits and credit principles.
More than onethird reported they do not use a​ budget to​ manage their familys expenses; over 30 percent of​ those surveyed either did not know or​ responded incorrectly when asked to​ define a​ good credit score; and nearly onefourth have never reviewed their credit report.
Given the growing importance and influence of​ credit scores on purchasing decisions, its startling that the majority of​ Americans do not understand what constitutes a​ good credit score, said Ken McEldowney, executive director of​ Consumer Action.
Various factors are used to​ determine a​ credit score, including a​ consumers payment history, the amount of​ debt currently owed and the length of​ credit history.
An amendment to​ the federal Fair and Accurate Credit Transactions Act passed in​ 2018 now allows consumers to​ receive one free credit report every year from each of​ the three major credit reporting agencies. Consumers can request their reports online at​ www. annualcreditreport. com.
As easy as​ it​ is​ to​ check your credit score and credit report, many still neglect to​ take this simple step to​ protect their credit and their finances, said Diana Don Colby, director of​ financial education at​ Capital One.
Besides reviewing your credit report, experts agree education is​ the key to​ a​ healthy financial future. to​ help consumers understand the basics, Capital One and Consumer Action created the MoneyWi$e financial education program.
The MoneyWi$e program includes free, multilingual brochures on personal finance topics, such as​ improving and rebuilding credit, budgeting, saving and investing.

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