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LendingTree survey reveals majority of Americans lack credit health awareness.

M2 EQUITYBITES-June 10, 2015-LendingTree survey reveals majority of Americans lack credit health awareness


Lending Tree (NASDAQ: TREE) said following financial literacy month in the US, it has conducted a pulse survey to understand how well average Americans grasp key aspects of financial health. The survey included questions related to common financial areas and consumers' awareness of their own credit.

Nearly 60 percent (59.1 percent) of Americans stated they do not know their credit score or provided an implausible value. Younger generations who are new to the world of credit have even less credit score awareness, with 74 percent of 18-24 year-olds admitting they do not know their credit score. The age group with the most credit score awareness was the 45-54 year-olds, 55.4 percent providing their actual score.

Lending Tree founder and CEO Doug Lebda said, "Credit scores can be very influential since it represents your credit-worthiness as a borrower. It's important for today's financial health, but can substantially impact your finances in the future. The better the score, the more likely you'll be able to receive better interest rates and terms on credit-based products like mortgages and auto loans."

Fewer than 10 percent (9.4 percent) of all respondents knew both their own credit score and what a perfect score was. This shows that many consumers don't truly know where they stand, even if they "know" their credit score.

Credit utilization, or the ratio of how much is owed versus the credit limit, is the second largest category factored into one's credit score. LendingTree asked what percentage of one's credit utilization ratio accounts for one's credit score. Less than a quarter (24.5 percent) of respondents knew that credit utilization accounts for 30 percent of one's credit score.

LendingTree) is the nation's leading online loan marketplace, empowering consumers as they comparison-shop across a full suite of loan and credit-based offerings.

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Publication:M2 EquityBites (EQB)
Date:Jun 10, 2015
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