866-997-4948(US-Canada Toll Free)

PERCEPTIONS OF CREDIT AND CREDIT MONITORING - US - AUGUST 2018

Published By :

Mintel

Published Date : Aug 2018

Category :

Cards & Payments

No. of Pages : N/A

The arena of credit scoring and credit monitoring is one rife with contradictions. Consumers overwhelmingly recognize the importance of building and maintaining good credit, and while most make a regular habit of checking their scores, many US consumers admit they never do. Credit reporting errors occur frequently, but consumers are generally powerless to prevent such mistakes, and are left to their own devices in search of a remedy. Despite myriad systemic issues, average consumer credit scores are, on the whole, improving.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
The issues
Two thirds of consumers check their credit score more than once per year
Figure 1: Credit monitoring frequency, May 2018
More than a quarter of consumers have disputed an error on their credit report
Figure 2: Interest in credit services, May 2018
Almost half of consumers fear their credit will be impacted by identity theft
Figure 3: Attitudes toward credit scores, May 2018
The opportunities
Consumers feel bad credit scores are hard to rectify
Figure 4: Attitudes toward credit scores, May 2018
Young consumers more likely to use credit-building products
Figure 5: Interest in credit-building product, by age, May 2018
Consumers with five or more credit cards check scores the most
Figure 6: Credit monitoring frequency, by number of credit cards owned, May 2018
What it means
THE MARKET – WHAT YOU NEED TO KNOW
The roots of credit reporting run deep
Legislative changes bring some benefits, while adding risk
Average credit scores are on the rise
Fraud and identity theft complaints on a slight downward trend
MARKET BREAKDOWN
Credit reporting: a brief history
Retail Credit Company, the birth of the modern credit bureau
Fair Credit Reporting Act (1970)
Dodd-Frank rollback offers a mixed bag for consumers
MARKET FACTORS
Average credit scores are on the rise
Figure 7: Average consumer credit score, October 2005-April 2017
An aging America
Figure 8: US population, by age, 2015, 2020, 2025
Fraud and identity theft complaints on a slight downward trend
Figure 9: Identity theft and fraud complaints, 2013-16
KEY PLAYERS – WHAT YOU NEED TO KNOW
Equifax data breach shook the industry; provides teaching moment
Credit scoring errors are rampant
Consumers have a host of free options
Alternate credit scoring models on the horizon
WHAT’S STRUGGLING?
Equifax data breach exposed 143 million Americans
Figure 10: USAA email campaign, October 2017
Credit reporting errors are rampant
Figure 11: Actions taken regarding credit report, May 2018
WHAT’S HAPPENING?
Consumers have many free options for identity and credit monitoring services
Credit card issuers
Figure 12: Chase email, Chase Credit Journey, June 2018
Figure 13: American Express email, July 2018
Figure 14: Capital One email, June 2018
Third-party sites
Figure 15: Credit Karma email, May 2018
Figure 16: Credit Sesame online advertisement, July 2018
Governmental intervention
LifeLock’s direct mail strategy is responsive to recent data breaches
Figure 17: LifeLock direct mail volume relative to data breaches, January 2017-May 2018
Experian’s State of Credit Report seeks to educate consumers
WHAT’S NEXT?
Alternate credit scoring models aim to account for “credit invisibles”
Figure 18: Affirm online advertisement, July 2018
Identity theft and credit monitoring services look to the Dark Web
Figure 19: Discover direct mail campaign, July 2018
Figure 20: LifeLock email, July 2018
THE CONSUMER – WHAT YOU NEED TO KNOW
Most consumers check credit scores regularly, but many never do
Majority of consumers reported credit score increases in the past year
Men are more likely to monitor multiple credit bureaus
More than a quarter of consumers have disputed an error on their credit report
Almost half of consumers fear identity theft may negatively impact their credit score
CREDIT MONITORING FREQUENCY
Two-thirds of consumers check their credit score more than once per year
Figure 21: Credit monitoring frequency, May 2018
Fathers are checking their scores the most
Figure 22: Credit monitoring frequency, by gender and parental status, May 2018
Investable assets correlate with credit score monitoring frequency
Figure 23: Credit monitoring frequency, by household investable assets, May 2018
Consumers with five or more credit cards check scores the most
Figure 24: Credit monitoring frequency, by number of credit cards owned, May 2018
INTEREST IN CREDIT MONITORING SERVICES
Most consumers have not paid for a full credit report
Figure 25: Interest in paying for a credit report, by gender, May 2018
Younger consumers are most interested in paying for credit and identity monitoring
Figure 26: Interest in paying for identity theft monitoring, by age, May 2018
More than a quarter of consumers have disputed an error on their credit report
Figure 27: Interest in credit services, May 2018
Young consumers more likely to use credit-building products
Figure 28: Interest in credit-building product, by age, May 2018
Figure 29: Capital One email campaign, February 2016
CREDIT MONITORING HABITS
Men are more likely to check multiple credit bureaus
Figure 30: Credit monitoring habits, by gender, May 2018
Consumers with incomes of $50K-75K more are more proactive
Figure 31: Credit monitoring habits, by household income, May 2018
More than 1 in 10 consumers have actively avoided checking their score
Figure 32: Credit monitoring habits, by age, May 2018
Consumers with lower credit are more likely to use third-party sites
Figure 33: Credit monitoring habits, by self-reported credit score, May 2018
Older consumers are more likely to say they receive credit score updates from their card issuers
Figure 34: Credit monitoring habits, by age, May 2018
CHANGES IN CREDIT SCORE
Most consumers say their scores remained the same or improved a little
Figure 35: Credit score change in past year, May 2018
Male and Hispanic consumers more likely to report credit score improvement
Figure 36: Credit score change in past year, by gender May 2018
Figure 37: Credit score change in past year, by Hispanic origin, May 2018
ATTITUDES TOWARD CREDIT SCORES
Most consumers believe their credit score is the main predictor of obtaining credit
Figure 38: Knowledge of credit score use, May 2018
Most consumers want to improve their credit score
Figure 39: Attitudes toward improving credit scores, May 2018
Almost half of consumers fear identity theft will impact their credit
Figure 40: Concerns about identity theft, May 2018
Many consumers see credit scoring as an invasion of privacy
Figure 41: Attitudes toward credit scoring fairness, by Hispanic origin, May 2018
PERCEPTIONS OF CREDIT SCORING
Consumers agree on how credit scores are derived
Figure 42: Credit scoring factors, ranked, May 2018
Figure 43: Mint email, July 2018
Consumers feel bad credit scores are hard to rectify
Figure 44: Attitudes toward credit scores, May 2018
APPENDIX – DATA SOURCES AND ABBREVIATIONS
Data sources
Consumer survey data
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *