IRVINE, CA – Experian Consumer Direct(SM), the leading provider of online direct-to-consumer credit reports and products, today announced the results of a nationwide study on the effects of delinquent payments on consumer credit scores. As the holiday season approaches, it can be easy to overspend and accrue debt. However, any late or missing payments can have a damaging effect on one’s credit score. In fact, consumers with one missed payment in the last year have an average credit score about 160 points lower than the average of those with no delinquent payments.
National and statewide results for the study can also be found on the Experian National Score Index Web site at www.nationalscoreindex.com. Overall, the study found that:
- 55 percent of U.S. consumers have at least one delinquency on their credit file and 34 percent have a delinquency in the last year.
- The average Experian PLUS Score(SM) for consumers with one delinquency in the last year is 598 versus 759 for those with no delinquent payments.
- The good news is 45 percent of the population have no delinquencies on their credit file.
“One of the best ways to maintain good credit is to pay bills consistently on time,” said Ed Ojdana, president of Experian Consumer Direct. “That’s why it is important to assess your finances before the holiday season when you’re more likely to spend larger sums of money and possibly accumulate debt that you may not be able to pay on time down the road.”
An important way for consumers to manage their credit score is to review their credit report on a regular basis. By reviewing their credit report frequently, consumers can also catch early signs of potential identity theft, which is the fastest growing crime in America.
About the Experian National Score Index
The Experian study was compiled using the Experian National Score Index which is based upon a nationwide sampling of three million consumer profiles. The Experian National Score Index provides the most up-to-date look at U.S. consumers’ credit and is a powerful indicator of the nation’s overall financial health. The Experian National Score Index monitors several components of consumer credit behavior including average debt, credit utilization and monthly payments. The Index is formulated using Experian’s consumer credit score model, called the PLUS Score. Experian’s PLUS Score is a numeric representation of financial behavior, based on information found in a credit report. It can range from 330 to 830 with a higher score indicating lower credit risk. The average Experian PLUS Score for U.S. consumers is 677.
More information about this study, plus credit data at the state and local level, can be found on the Experian National Score Index site at www.nationalscoreindex.com.
About Experian Consumer Direct
Experian Consumer Direct(SM) is a business unit of Experian, a global information solutions company. As a premier online marketing business, Experian Consumer Direct delivers superior products to consumers. Among its products, the business provides consumers instant access to their credit report and score, identity theft prevention products, fraud resolution products, information protection products, special offers from online merchants and the ability to earn points and gift cards that can be redeemed at many of the world’s leading retail companies. Experian Consumer Direct has established integrated co-branded partnerships with leading online financial destinations that provide consumers with a broad range of comprehensive online financial products and information essential to managing one’s financial life. More information about Experian Consumer Direct can be found at www.experian.com.
