Almost three-quarters of people who check their credit score more than seven times a year say that this frequency – some would say “compulsive” – changed their financial behavior for the better, according to the latest Discover study.
An even larger group thinks their score improved over the year. On the other hand, almost a third of consumers said they had not checked their creditworthiness rating even once in the past year, according to another study, this time carried out by E-Money.
Do finances influence our behavior?
According to Laks Vasudevan, Vice President of Discover, there is a clear relationship between controlling our performance and improving our credit behavior. “We are starting to better understand the factors that affect our performance in assessing creditworthiness. This awareness helps us to better manage our creditworthiness and maintain its positive state. “
More and more consumers are aware of the important role credit assessment plays in their financial life – it is important when applying for another payment card, buying a car or renting an apartment, and above all – when applying for a mortgage. The higher the creditworthiness ratio, the better the interest rate for which consumers will qualify.
How are millennials dealing with finances?
It seems that the attitude to creditworthiness is also a generational matter. Millennials (people aged 18 to 34) checked their creditworthiness more regularly than their peers from the previous generation X, according to Discover, who examined 2,000 consumers in March.
Millennials also have a more personal attitude toward their result. Almost half of Millenials said that creditworthiness assessment influences their self-esteem – in Generation X and baby generation – boomers will be 43% and 30% respectively.
People with the highest creditworthiness ratio not only have a better opinion about themselves but are also more likely to formalized relationships with other people, DFRB research proves. The results when assessing creditworthiness are related to the ability to form relationships and the ability to get involved, confirms the DFRB report. In addition, matched results can be a good omen for a future relationship. Almost half (49%) of E-Money respondents said that they would not marry someone with a negative credit history, while (34%) would not even date a person.
Everything indicates that it is worth taking care of the best possible assessment of our creditworthiness. Awareness of our result will allow us to build better financial habits and make wise decisions. Not to mention the fact that with a good result we can count not only on a bank loan, but also … a trust loan from our other half.