TransUnion’s TrueCredit.com Tracks Americans’ Credit Habits

With consumers taking stock of the year that was, TransUnion’s TrueCredit.com commissioned GfK Roper Public Affairs & Media to conduct two separate surveys designed to gauge distinct aspects of consumers’ current credit habits.

Second Annual Survey of American Credit Habits

In its second annual survey of American credit habits, TrueCredit.com found that 35 percent of consumers actually report purchasing less on credit this holiday season than last year, when the same question yielded 43 percent. Similar to the 2006 survey, four in ten (43 percent) say they have the same amount of credit card debt this year as last, with 11 percent reporting they have more debt and 29 percent reporting they have less. Also consistent with last year’s findings on this topic, the survey reveals:

• Fully six in ten (63 percent) do not know their credit score.
• Sixty-five percent say they have never checked their credit reports for free.
• Forty-seven percent never check their credit reports, and 16 percent check their credit reports less often than once a year.

“While it’s great to see people reining in their credit card spending, they still need to be aware of how lenders are likely to view them based on information contained in their credit reports,” said Lucy Duni, Director of Consumer Education for TransUnion’s TrueCredit.com. “Even if you’re cautious with credit usage and pay your bills on time, it still comes down to the fact that you have three credit reports, each with an associated score. Information in each of your reports can vary and a lender may use any one or more of those reports to make its decision. If you want to save money by getting favorable interest rates, knowing exactly what’s contained in each of your credit reports is critical.”

Pre & Post Holiday Financing Offers Survey

Separately, TrueCredit.com inquired into consumers’ intended and actual use of special financing offers over this holiday season. While a fourth-quarter consumer query revealed that 18 percent of Americans said they were likely to make a major purchase during the holidays using either a zero-percent financing or a no payments/no interest offer, a survey after the holidays indicates that only 7 percent actually acted on such an offer.

“The initial appeal of no interest and zero percent financing can be very compelling,” added Duni. “But consumers who restrained themselves and are otherwise acting responsibly with their credit will find their scores and creditworthiness in better shape for having done so.”

Methodology

GfK Roper Public Affairs & Media conducted these studies using Random Digit Dialing (RDD) methodology. From January 5 to January 7, 2007, a total of 1,004 interviews were conducted among adults across America, and from January 12 to 14, 2007, a total of 1,016 interviews were conducted. Age, gender, income and geographic information were collected. The margin of error for the complete sample is +/- 3 percentage points. The margin of error for subgroups may be higher.