TransUnion has provided me with compensation for my time and efforts on this article. As always, all opinions are 100% my own.
Everyone has a credit score, but does everyone know what actually affects their credit score?
TransUnion recently conducted a survey that revealed that the majority of consumers have difficulty identifying what affects their credit score and what’s included in their credit report. For example, nearly half of respondents (48%) who have checked their credit report in the the last year incorrectly believed an increase in income improves their score.
The reality is that most people do not realize what actually affects their credit score. Some other common misconceptions of what affects credit scores are:
- Employment and income information – Ready for a shocking statistic? Of those who checked their credit report within the last 30 days half mistakenly believe their full employment history (55%) and income level (41%) are included in their reports.
- Credit inquiries – One out of five who checked their credit report within the past year thought that checking their credit report would decrease their score. This is simply not true.
- Paying down debts – Paying off debts from late payments does not automatically increase a credit score, yet 61% of those who checked their credit report in the last 30 ays believed it does automatically increase a credit score.
TransUnion has put together an excellent infographic that debunks six myths that people commonly hold about their credit score and credit report. Which ones do you hold true?
If you want to learn more about what impacts your credit, check out the TransUnion blog .
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Ahhh I love a good infographic.
Anum Glad you enjoyed it! Some of the statistics on this one were pretty shocking. It’s amazing how little most people know about what factors affect their credit score.
Gosh, I’m such a sucker for a good infographic :). These stats are pretty surprising!
Great infographic.
Christina@EmbracingSimple I agree! It’s hard to believe how misinformed people are who LOOK at their credit report; can’t imagine if you took those out of the sample.
Jason @ The Butler Journal Thanks Jason, I think it’s a good one as well. The statistics are pretty crazy.