Blog: 1 in 3 Americans Have Never Checked Their Credit Reports
By Jim Donovan: A recent survey by Bankrate.com found that more than 1 in 3 Americans have never checked any of their credit reports.
Other survey highlights:
• 35% of American adults report that they have never checked their credit reports
• 14% say they typically go more than a year between checks
• 44% of senior citizens and 41% of millennials have never checked any of their credit reports.
• Not all consumers are behind in monitoring their finances. Just under half of Americans (48%) have reviewed at least one of their reports within the past year.
• One in four Americans review their credit reports more than once a year.
Credit reports are important documents that lenders, employers, landlords, utility companies and others use to measure financial responsibility. Credit reports detail a person's credit history, including payment records, available credit and delinquencies. A credit score is a three-digit number generated using information from an individual's credit report. Credit scores help determine loan qualifications, interest rates and credit limits. Frequent credit monitoring can protect consumers against identity theft and errors (the Federal Trade Commission estimates that credit report errors affect tens of millions of Americans).
"Monitoring your credit goes well beyond scanning a three-digit number," said Jeanine Skowronski, credit card analyst at Bankrate.com. "Americans need to thoroughly review their credit reports for errors or signs of fraud. They also need to understand what factors, like missed payments or high debt to available credit ratios, are driving their credit score in order to improve it. A good credit score will help you, among other things, qualify for the best rates on loans."
At least the new Bankrate.com survey found not all consumers are lagging behind. About half of Americans (48%) have reviewed at least one of their credit reports within the past year. Those between the ages of 30 and 49 were the most likely to do so. One in four Americans review their credit reports more than once a year.
