Want to become a Financially Savvy Consumer? Take this Free Credit Score Quiz and You Could Win $500!
Your credit score can affect many parts of your financial life. It is vital in determining how difficult or easy it will be to purchase a car, home or student loan. Unfortunately, while the large majority of consumers have some basic knowledge about credit scores, after taking part in a Tweet chat recently, I learned that there is still much that consumers don’t know about credit and credit scores.
To help improve consumers credit score knowledge, Consumer Federation of America (CFA) has partnered with Vantage Score Solutions to provide consumers with a credit score quiz that tests an individual’s knowledge of how a credit score is obtained and what can affect it.
On Tuesday, CFA and Vantage Score hosted a Tweetchat where they discussed the results of a survey measuring consumer credit score knowledge. I participated in the Tweetchat and was surprised to find out that consumers don’t know some very basic facts about credit scores. Here’s some of what I learned from the chat:
Only 42% of consumers know what a credit score measures (it measures risk of not repaying a loan).
Age does not affect your credit score (neither does ethnicity).
Checking your credit report will not hurt your credit score. More surprisingly, over half of consumers surveyed in the CFA survey had not taken advantage of the free annual credit report offered at www.annualcreditreport.com
Professionals participating in the Tweetchat also offered advice on how to improve credit scores. Here are three top tips:
Establish and use several types of credit, and keep all accounts in good standing.
Keep credit card balances below 30% of your credit limit.
Create a budget and don’t over extend yourself (don’t take out more credit than you can realistically handle).
Once the Tweetchat ended, I took the credit score quiz, which was very hands-on and informative. Here are a few of the facts I learned that I was not already aware of:
Marital status does not affect your credit score (I thought it did since I’ve always heard married couples pay a “marriage tax.”)
On a $20,000, 60-month auto loan a borrower with a low credit score is likely to pay $5,000 more than a borrower with a higher score. That’s a 25% increase, so it definitely pays to adopt behaviors that create a higher credit score.
Credit repair companies occasionally, but hardly ever, help in correcting credit report errors or improving one’s credit score.
This credit score quiz from CFA and Vantage is an excellent starting point for credit score education. If you truly want to increase your knowledge of how credit and credit scores work so that you can begin achieving your financial goals, take this quiz! You won’t regret it. It is well worth the time and you might even win $500! Visit creditscorequiz.org for more information and to take the quiz TODAY.
CreditScoreQuiz.org is an informational tool developed by the Consumer Federation of America (CFA) and VantageScore Solutions. The two organizations developed the credit score quiz and website to increase consumer knowledge about credit scores and how to improve them. Since 2011, they have asked the Opinion Research Corporation to administer this quiz annually to a representative sample of 1,000 adult Americans. The quiz results indicate that many Americans could improve their credit score knowledge and ability to manage their scores. They encourage individuals to take this quiz and urge teachers and other educators to utilize it in their financial education programs.
- Category: Blog
- Published: 22 May 2014