Survey: Ignorance Prevails About Credit Scores

Most consumers are clueless when it comes to understanding credit scores, according to a survey sponsored by the Consumer Federation of America and Providian Financial.The survey, conducted by Opinion Research Corp. International, interviewed 1,027 consumers on their knowledge of what a credit score measures, what it means, and how to raise it. Of the 122 respondents who said their knowledge about credit scores is excellent, only 41% understood that a credit score measures risk, only 45% knew that Tenneco is not a credit bureau, and 56% incorrectly believed that a married couple has a combined credit score. "Now that credit scores are increasingly used by utilities, insurers, and employers, as well as creditors, it is essential for consumers to learn their score and what it means," said CFA executive director Stephen Brobeck. The CFA and Providian intend to conduct a follow-up survey next year.