Do Consumers Really Understand Credit Scores And Their Impact?

Reblogger Robert Bob Gilbert
Real Estate Agent with Berkshire Hathaway HomeServices Anderson Properties TX Real Est. 567774

This article shown below was written by George Souto which discusses do Consumers really understand Credit Scores. I personally believe most folks are marginally aware of the importance of credit scores. I have seen older folks with a much higher awareness than the younger Millennial group who believe since they are young they will be concerned later in their lives. My opinion does coincide with the survey results discussed in this post. Please stop by Geaorge post and leave comments.  Follow him if you are not already doing so. 

Original content by George Souto NMLS #65149

Two to three years ago VantageScore Solutions and the Consumer Federation of America (CFA) conducted a survey on Do Consumers Really Understand Credit Scores And Their Impact?   The survey  revealed some results I would not have expected, especially among the Millennial Generation.

One thing which seemed to be very clear from the survey was, young adults ages 18-34 do not have as much understanding about credit scores as do older adults.  I would have expected the results to have been the other way around, since credit scores have been playing a much bigger role in recent years than they did in the past.

One thing most were aware of regardless of age, was that Mortgage Lenders and Credit Card Companies pull their credit when they apply for a mortgage or credit card.  They also were all aware that a bad payment history will have a negative impact on their score.  But beyond that younger consumers have limited knowledge about credit scores.

There was one other thing the survey revealed which was a bit of a shock to me.  Only 42% of those surveyed knew credit scores measure the risk of a borrower not repaying a loan.  I wish the survey had gone further in trying to identify what those surveyed felt was the purpose of credit scores if not for identifying risk.  Another surprise was that younger consumers think age is a factor in calculating credit scores. Given the fact consumers between the ages of 18 to 34 start off life with huge Student Loans, I would have expected them to have a better understanding of how credit and credit scores work.

The main conclusion I came away with from this survey was, consumers do not have a very good understanding of credit scores, and the impact credit scores have.  One other conclusion I came away with, was that high schools and colleges need to start educating future generations on credit scores and the impact they will have on their lives.  If our school systems begin to do this, maybe future generations will avoid mistakes made by others in the past.

 

 

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 Info about the author:

George Souto NMLS# 65149 is a Loan Originator who can assist you with all your #FHA, #CHFA, and #Conventional #mortgage needs in Connecticut. George resides in Middlesex County which includes #Middletown, #Middlefield, #Durham, #Cromwell, #Portland, #Higganum, #Haddam, #East Haddam, #Moodus, #Chester, #Deep River, and #Essex. George can be contacted at (860) 573-1308 or gsouto@mccuemortgage.com

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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude - Carlsbad

Hi Bob

Thanks for sharing this post. I missed it somehow but as with all that George does it looks like a winner!

Have a terrific weekend!

Jeff

Mar 03, 2017 11:26 AM #1
Rainer
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Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Robert.

This is an important post that I missed the first time around.

Thank you for the re-blog.

Have a good weekend.

Mar 03, 2017 12:00 PM #2
Rainmaker
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Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

This was an excellent blog to select for reblog, Bob!  Understanding the impact of credit scores is critical for home buyers to learn.

Mar 03, 2017 04:56 PM #3
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Bob  

An outstanding choice to re-post George Souto post.

Good luck and success.

Lou Ludwig

Mar 03, 2017 07:39 PM #4
Rainmaker
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Troy Erickson
Diverse Solutions Realty www.ChandlerRealEstate.weebly.com - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Bob - Great selection for a re-post. I would agree that more people need to be educated about credit scores, and the lending process in general.

Mar 03, 2017 11:21 PM #5
Rainmaker
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Bob.  This is an excellent choice for a re-blog as many consumers just don't understand the ramifications of their credit scores.

Mar 04, 2017 04:10 AM #6
Rainmaker
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Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Nice choice for a reblog, it seems like people just assume their credit score is good, but usually have a rude awakening when they apply for a mortgage.

Mar 04, 2017 05:54 AM #7
Rainmaker
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Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Bob, great post to re-blog, and agree, the public is unaware of how this score is derived.

Mar 04, 2017 06:19 AM #8
Rainmaker
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Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Thanks for directing me to this post via a reblog, I didn't catch it first time around.  I will head on over to the original post.  Have a great weekend! -Kasey

Mar 04, 2017 10:13 AM #9
Rainmaker
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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Bob

I stopped back to bookmark your post.

Good luck and success.

Lou Ludwig

Mar 04, 2017 08:18 PM #10
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Bob thank you for re-blogging my blog.  Somehow we need to get people more educated about how credit scores impact their lives.

Mar 04, 2017 08:43 PM #11
Rainmaker
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

This is an excellent selection for a reblog and important information to share.

Mar 05, 2017 04:14 AM #12
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Robert Bob Gilbert

Your Katy TX ( West of Houston) Real Estate Expert
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