 |
Study Shows Americans Need to Get Financially Fit |
|
|
Submitted by Trent Orosco
| RSS Feed
| Add Comment
| Bookmark Me!
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 one-third reported they do not use a budget to manage their family's expenses; over 30 percent of those surveyed either did not know or responded incorrectly when asked to define a good credit score; and nearly one-fourth have never reviewed their credit report.
"Given the growing importance and influence of credit scores on purchasing decisions, it's 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 consumer's 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 2004 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.
|
|
|
|
|
LinkedIn Recommendation:
 Jamie Pratt - Market Developer at Turboware - Teo helps me with the daily management of my customers' social media accounts. He has an entire system dedicated to social media management, and it is easy to use, provides easy reporting and allows me to communicate with my customers through the system - they can log in and participate. I haven't seen anything else like it on the web. It's not available to the general public, yet - I was one of the beta testers, but if you need something like this, just ask Teo and I am sure he will send you some details. Great system! - March 19, 2012, Jamie was Teo's client |
|
Featured [Credit] Articles:
|
|
