MBA Newslink – Mike Sorohan
Nearly two-fifths of adult Americans incorrectly answered wide-ranging questions about credit scores, the Consumer Federation of America said yesterday. The consumer survey by CFA and VantageScore Solutions said 42 percent of respondents did not know that mortgage lenders use credit scores in decisions about credit availability and pricing; 40 percent said they did not know credit card issuers used credit scores for the same purpose. Additionally, the survey said large percentages of respondents incorrectly believed that age (43 percent) and marital status (40 percent) are used in calculating credit scores. Between one-quarter and one-third do not know when lenders are required to inform borrowers of the credit score used in their lending decision–after consumers apply for a mortgage (27 percent), when they are turned down for a loan (24 percent) and when they don’t receive the best price or other terms (35 percent).