Three out of four consumers they are aware of their credit standing, but only half check their credit score more than once a year, according to a study commissioned by Discover.
Specifically, 28 percent said they did not check their score at all during the prior year, while 21 percent checked it once. Further, 25 percent checked it two to three times, 12 percent checked it four to six times,
6 percent checked it seven to 11 times, and 8 percent checked in more than 12 times.
Those who checked their credit score most often were also more likely to report improvements to their score. The survey found that those who checked their score 12 or more times during the prior year were nearly twice as likely than those who checked their score just once to say that their score improved greatly or slightly over that same period — 61 percent to 32 percent, respectively.
“Consumers have come a long way in recent years in building awareness of their credit score and the ways in which it can impact their day-to-day life,” Ryan Scully, Discover’s vice president of marketing, said. “The next step for many is to stay on top of their credit standing throughout the year. By regularly checking their score—if not monthly, then at least every couple months—consumers can gain valuable insight into the factors that affect their score, which in turn can help them make smarter financial decisions.”
Among those who checked their credit score during the prior year—regardless of how many times—39 percent said the leading motivation to check their score was to improve or maintain it. That was followed by 18 percent who checked their score out of concern for fraud or identity theft; 17 percent who checked out of curiosity; and 12 percent who checked before making a major purchase or applying for a loan or credit card.
Among those who had not checked their credit score during the prior year, 48 percent said the main reason they did not was because there was no need to check it. Other reasons included hesitancy to share personal information (18 percent); not wanting to pay to check it (17 percent); and not knowing how or where to check it (13 percent).
The study also found that millennials place less importance on their credit standing than other generations. Among millennial respondents, 54 percent said their credit standing is important to them right now, compared to 63 percent of generation X and 65 percent of baby boomers.
Millennials are also less aware of their credit standing than their generational counterparts, as only 57 percent of millennials said they are aware of their credit standing, compared to 74 percent of generation X and 85 percent of baby boomers.
While 80 percent of baby boomers and 62 percent of generation X think their credit standing is within their control, only 51 percent of millennials think so.
“One of the best pieces of advice I can offer young consumers is to get on top of their credit standing early and often,” Scully said. “Don’t wait to check your credit score until just before you’re ready to make a big purchase or apply for a loan. If you get in the habit of checking your credit score at a young age, you can start learning about and building the types of credit behaviors that can, over time, contribute to a healthy credit score.”