Home > Credit Score > 1 in 3 Americans Have Never Checked Their Credit Reports

Comments 0 Comments

Americans are entitled to an annual copy of their credit report from each of the three major credit bureaus: Experian, Equifax and TransUnion. It’s free, and it’s a crucial step in maintaining healthy credit. But a third of Americans have never checked their credit reports or credit scores, according to a recent survey from TransUnion.

Everyday decisions and purchases impact consumers’ financial health, which can be easily seen in credit reports. The survey, which interviewed 937 American adults and was conducted by Google Consumer Surveys in September, indicates a large portion of consumers aren’t connecting the dots between past behaviors and current credit standings.

There are many reasons people may not pull their credit reports — fear, apathy or a simple lack of knowledge — but it’s something everyone should add to their financial habits. In a news release announcing the survey results, TransUnion Vice President Julie Springer outlined the importance of these financial tools:

“Your credit report and credit score play crucial roles in achieving your financial goals. With a healthy score and responsible past credit behavior, you will make it more likely for lenders to offer you lower interest rates on mortgages, auto loans, other loans and credit cards — even your property and insurance rates can benefit.”

Of the respondents who had checked their reports or scores before, 24.6% said they hadn’t done so in the last year. There are multiple ways to access both credit reports and scores: Federal law entitles consumers to a free annual credit report from each of the three major credit bureaus — you can get all three at once or spread them out, and there are other companies that furnish credit reports, as well. Some state laws require more frequent access to free credit reports (Colorado, Georgia, Maine, Maryland, New Jersey and Vermont, as well as Puerto Rico), and consumers can also obtain free reports if they are unemployed and seeking work, have been turned down or charged more for credit or insurance, or if they are victims of fraud.

Individuals can also monitor monthly changes in their credit scores for free by using the Credit Report Card from Credit.com — it shows how well consumers are doing in areas that heavily factor into credit scores like payment history, length of credit history, diversity of debt, inquiries and debt usage.

Not only does reviewing this information tell consumers how to manage their credit profiles, it can highlight potentially fraudulent activity. Identity theft can wreck credit scores, so spotting incorrect personal information on a credit report or a sudden drop in credit scores will help an individual address potential fraud before it wreaks havoc on his or her finances.

Image: AndreyPopov

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Credit.com receives compensation for the financial products and services advertised on this site if our users apply for and sign up for any of them.

Hello, Reader!

Thanks for checking out Credit.com. We hope you find the site and the journalism we produce useful. We wanted to take some time to tell you a bit about ourselves.

Our People

The Credit.com editorial team is staffed by a team of editors and reporters, each with many years of financial reporting experience. We’ve worked for places like the New York Times, American Banker, Frontline, TheStreet.com, Business Insider, ABC News, NBC News, CNBC and many others. We also employ a few freelancers and more than 50 contributors (these are typically subject matter experts from the worlds of finance, academia, politics, business and elsewhere).

Our Reporting

We take great pains to ensure that the articles, video and graphics you see on Credit.com are thoroughly reported and fact-checked. Each story is read by two separate editors, and we adhere to the highest editorial standards. We’re not perfect, however, and if you see something that you think is wrong, please email us at editorial team [at] credit [dot] com,

The Credit.com editorial team is committed to providing our readers and viewers with sound, well-reported and understandable information designed to inform and empower. We won’t tell you what to do. We will, however, do our best to explain the consequences of various actions, thereby arming you with the information you need to make decisions that are in your best interests. We also write about things relating to money and finance we think are interesting and want to share.

In addition to appearing on Credit.com, our articles are syndicated to dozens of other news sites. We have more than 100 partners, including MSN, ABC News, CBS News, Yahoo, Marketwatch, Scripps, Money Magazine and many others. This network operates similarly to the Associated Press or Reuters, except we focus almost exclusively on issues relating to personal finance. These are not advertorial or paid placements, rather we provide these articles to our partners in most cases for free. These relationships create more awareness of Credit.com in general and they result in more traffic to us as well.

Our Business Model

Credit.com’s journalism is largely supported by an e-commerce business model. Rather than rely on revenue from display ad impressions, Credit.com maintains a financial marketplace separate from its editorial pages. When someone navigates to those pages, and applies for a credit card, for example, Credit.com will get paid what is essentially a finder’s fee if that person ends up getting the card. That doesn’t mean, however, that our editorial decisions are informed by the products available in our marketplace. The editorial team chooses what to write about and how to write about it independently of the decisions and priorities of the business side of the company. In fact, we maintain a strict and important firewall between the editorial and business departments. Our mission as journalists is to serve the reader, not the advertiser. In that sense, we are no different from any other news organization that is supported by ad revenue.

Visitors to Credit.com are also able to register for a free Credit.com account, which gives them access to a tool called The Credit Report Card. This tool provides users with two free credit scores and a breakdown of the information in their Experian credit report, updated twice monthly. Again, this tool is entirely free, and we mention that frequently in our articles, because we think that it’s a good thing for users to have access to data like this. Separate from its educational value, there is also a business angle to the Credit Report Card. Registered users can be matched with products and services for which they are most likely to qualify. In other words, if you register and you find that your credit is less than stellar, Credit.com won’t recommend a high-end platinum credit card that requires an excellent credit score You’d likely get rejected, and that’s no good for you or Credit.com. You’d be no closer to getting a product you need, there’d be a wasted inquiry on your credit report, and Credit.com wouldn’t get paid. These are essentially what are commonly referred to as "targeted ads" in the world of the Internet. Despite all of this, however, even if you never apply for any product, the Credit Report Card will remain free, and none of this will impact how the editorial team reports on credit and credit scores.

Your Stories

Lastly, much of what we do is informed by our own experiences as well as the experiences of our readers. We want to tell your stories if you’re interested in sharing them. Please email us at story ideas [at] credit [dot] com with ideas or visit us on Facebook or Twitter.

Thanks for stopping by.

- The Credit.com Editorial Team