The exact intricacies of a credit score continue to be one of the most confusing financial concepts for Millennials, according to HousingWire. This intangible three-digit number holds the power to some of the most expensive purchases in a consumer’s life, including a house, and yet according to a recent poll from LendEDU, young American consumers only have an intermediate understanding of that all-important number.
Here are a few of the findings:
43.69% falsely believed they could improve their credit score by increasing their credit utilization
36.27% falsely believed they could improve their credit score by maxing out, but paying a credit card on time
Only 17.23% correctly knew they could improve their credit score by decreasing their credit utilization
79.36% have checked their credit score before
57.58% have a FICO credit score that is either “fair” (580-669) or “poor” (300-579)
74.35% could identify the correct definition of a credit score