Credit Confusion: 20% Of Americans In The Dark About Their Scores
The credit score problem is loose, and it’s spinning heads! New research has blown the lid off some credit score secrets that are sure to raise eyebrows.
This survey had 2,000 respondents and 80% of them (1,612) were proud homeowners.
Out of the brave souls who shared their thoughts, a mere 28% were like, “My FICO score? It’s totally on point!” That’s like finding diamonds in a hayfield.
Roughly one in nine respondents (that’s 12%, in case you’re counting) think their credit score deserves an upgrade. They’re thinking, “Hey, credit score, you could do better!”
But on the flip side, 50% feel like they’ve got a credit score that’s higher than it should be. That includes a smidge more homeowners (51%) than the non-homeowners (46%).
One in ten Americans lives the credit score mystery, not having a clue what it even is. And, get this, one in five wouldn’t know where to start if they wanted to check it!
Credit Scores vs. Bill-Paying Skills: The Home Loan Dilemma
A survey conducted by OnePoll, on behalf of FormFree, revealed some jaw-dropping insights into the American psyche regarding home loans.
Only half of Americans believe that their credit score should be the key player in the grand game of “Do I Qualify for a Home Loan?” A 50-50 split!
While the other 53% (because we all know surveys like to add a dash of mystery) are like, “It’s not just about that FICO score thingamajig.” They’re waving the flag for good old-fashioned bill-paying prowess. It’s all about keeping those bills in line.
With all this back-and-forth, it’s no wonder that only half of the non-homeowners are in the confidence department. Only 50% of them confidently believe that they’ll one day be chillin’ in their very own dream house.
What People Really Think About Scores
Respondents were asked about credit scores, and their responses were like pieces of a puzzle that create a distinct picture of what they think.
First off, they thought that to snag that dreamy mortgage, you’d need a FICO score in the range of 670 to 769. However, there’s that 20% who thought they could wiggle into mortgage territory with scores under 669 – going against the crowd!
When asked to elaborate on what they generally thought about credit scores, it was like a scene from a spy movie. 81% decided to stay mysterious and not label them as “necessary.” Credit scores are playing hard to get!
Homeownership Battles: The Trio Of Credit Scores, Mortgage Qualification, And Savings
40% of survey takers pointed their fingers at “insufficient credit scores” as one of the big, bad wolves standing between the average American and homeownership. It’s right up there with “difficulty qualifying for a mortgage loan” at 42% and “insufficient savings for a down payment” at 43%. Apparently, they’re playing a high-stakes game of Monopoly, and credit scores are one of the most formidable obstacles on the board!
Top 5 Biggest Barriers To Homeownership
- High housing prices in the market (49%)
- Insufficient savings for a down payment (43%)
- Difficulty qualifying for a mortgage loan (42%)
- Insufficient credit score (39%)
- Limited job stability or income (34%)
“It is astonishingly rare for credit bureaus to receive comprehensive reports on consumers’ payment history from landlords or utility companies. At a time when the average monthly rent is higher than the average mortgage payment in many U.S. cities, only 24% of renters are getting credit for managing their housing expenses,” said FormFree CEO Brent Chandler.
“This lack of data fails to provide a fair assessment of individuals’ financial management skills and undermines the accuracy of credit evaluations when used without deeper cash-flow analytics.”
The Inescapable Attraction Of Spending Money
Everyday money maestros make three to four (let’s call it 3.78 for a little extra flair) financial moves in a single day. You know, the usual suspects like fueling up at the gas station, taming the laundry beast, or bagging some groceries. It’s a financial dance that keeps life rolling!
But 69% of those who were surveyed confessed that they’ve got this itch, this urge, this magnetic pull.
Leaving the house without spending a single buck? That’s just not in their playbook. Money has its own gravitational force, and they’re happily orbiting around it.
Survey Methodology
This random double-opt-in survey of 2,000 general population Americans was commissioned by FormFree between May 26 and May 31, 2023. It was conducted by market research company OnePoll, whose team members are members of the Market Research Society and have corporate membership to the American Association for Public Opinion Research (AAPOR) and the European Society for Opinion and Marketing Research (ESOMAR).
