Biases in creditworthiness perception

credit-losers

Despite wider availability, credit scores still baffle consumers

It’s now easier than ever to see your credit score for free thanks to a growing number of credit card providers offering free credit scores to cardholders. But according to a study released March 12 by the credit bureau TransUnion, more access hasn’t led to more understanding. Many consumers remain mystified by the three-digit number. The study, which included results from a February 2015 poll of 1,000 adult American consumers, finds we are especially confused by the data that goes into our credit scores and are frequently uncertain about what’s included in our credit reports. For example, 45 percent of consumers polled by TransUnion mistakenly believed that rental payments directly affect scores. Forty-seven percent thought cellphone payments were regularly included. Even people who recently checked their credit reports were confused — indicating that increased access to credit information doesn’t necessarily mean consumers understand it. ….[READ]

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