Consumers who regularly check their credit score are generally doing better when it comes to their overall credit behavior and profile, according to a survey from Discover.
The survey found that 73 percent of those who checked their credit score seven or more times in a year said that this regular vigilance had a positive impact. That impact includes behavior such as paying bills on time, paying down loans and maintaining low balances on their credit cards.
Meanwhile, 44 percent of those who checked their score just once during the prior year felt similarly.
According to the survey, 76 percent of those who checked their score seven or more times during the previous 12 months said their score improved greatly or slightly over that same time period.
“Checking your credit score is one of the simplest things that anyone can do to get on the path to understanding their credit health,” said Julie Loeger, executive vice president and chief marketing officer at Discover. “But checking is just the first step. One of the reasons we launched Discover Credit Scorecard is to help people stay on top of their credit by gaining more knowledge of key factors that go into their score.”
Discover led the way a few years ago as the first major credit card provider to offer free credit scores to customers. Recently, they became the first to offer free FICO credit scores and personalized credit profile to consumers who are not Discover customers.
Here are a few additional key findings from Discover’s survey:
- 82% of survey respondents were aware of their credit standing, but only 54% felt it had an impact on their day-to-day lives
- 47% of respondents said their credit standing had little or no impact on renting an apartment
- 64% of respondents thought their credit standing had little or no impact on getting a job and nearly 1/3 of respondents thought their credit affects being approved for a credit card
- 40% of millennial respondents said they checked their credit at least four times in the past year, compared to 30% of generation X and 25% of baby boomer respondents
- 57% of millennials said their biggest motivator for checking their score was to improve or maintain it