Consumers know much more about credit scores than they did a year ago, but they still don’t know how costly a low score can be, according to a study released yesterday.
“The good news is that consumers know much more than in early 2011,” said Stephen Brobeck, executive director of the Consumer Federation of America, which conducted the survey in early April along with VantageScore Solutions.
“Despite our positive survey findings, there remains cause for concern,” Brobeck said.
Among those concerns: consumers who wrongly think factors such as age and marital status affect credit scores or the belief by many consumers that credit-repair companies are always or usually helpful in correcting credit-report errors or improving scores, he said.
The report follows a Dispatch investigation that detailed how easily mistakes can show up on credit reports and how difficult it is to remedy those issues. Mistakes on credit reports have cost people home loans and much more.The second annual study by the Consumer Federation, an association of nearly 300 consumer groups, and VantageScore Solutions found that consumers know much more about which companies use scores, who collects information that the scores are based on, that consumers have more than one credit score and the importance of checking credit reports.
Read more at the Columbus Dispatch: http://www.dispatch.com/content/stories/business/2012/05/15/consumers-savvier-on-credit-scores.html