Survey: Nearly 30% of US Adults Don’t Check Their Credit Score Annually   

Despite inflation, rocket-high interest rates, stagnant wages, and shocking grocery prices, Americans continue to find ways to manage the high cost of living. Today’s economy conflates a range of issues for consumers, including the often-overlooked financial literacy crisis. With a lack of knowledge and financial cushion, many individuals face crippling financial situations that can negatively impact or worsen their credit standing.

We surveyed 500 individuals across the United States to better understand their knowledge of foundational financial concepts, credit management practices, and how they are grappling with the financial challenges posed by today’s economy. 

We compared these results to a similar survey we conducted last year, and it’s clear that not much has changed. Too many Americans are not keeping up with credit management practices or staying informed about their scores.

Our survey opened with questions seeking to understand the level of financial literacy respondents had on the basics of credit scores and reports. A majority of participants in the survey identified as women between the ages of 36 and 45. 

The initial results were promising, as 90% of those surveyed shared that they understood what a credit score is and how it affects their ability to obtain credit. Another 83% said they understood the difference between a credit report and a credit score. But that’s about where the positive results end.

Only 73% of respondents said they regularly check their credit score at least once a year. While 73% may sound like a strong number, that left 135 respondents out of the 500 we surveyed in the dark about their credit standing.

“It’s concerning that this survey revealed nearly 30% of Americans do not check their credit score annually,” said Erica Sandberg, a consumer finance expert with BadCredit.org. “Misinformation has caused consumers to think that checking your credit score can negatively impact it. But this is not true. Regularly checking your credit score allows individuals to track their financial well-being and assess how they can move forward and better position themselves financially.” 

The overall findings uncovered that while there are areas where respondents had a better understanding of basic financial principles, such as what an APR is and how missing credit card payments can negatively impact their credit, areas for growth remain. 

“It’s important for our society to prioritize financial education and smart habits early on so we can avoid making financial missteps that can negatively impact our credit and opportunities in the future,” added Erica.

In addition to gauging consumers’ credit knowledge, the survey also explored how individuals are navigating the U.S. economy. Survey participants were asked to share the steps they’ve taken to address the rising cost of living, and an overwhelming 75% said they’ve had to reduce how much they spend.

Additionally, 46% of respondents said they are saving less, 40% are withdrawing from their savings, and 29% said they are depending on their credit cards more to keep up with the high cost of living. 

“It’s a relief to see the majority of respondents do not resort to credit card usage to make it through this economically challenging season,” said Erica. “While credit card usage may seem like the quickest and easiest solution to tackle elevated costs, racking up expenses this way can lead to further financial strife in the form of expensive interest charges.”

Another 71% of respondents said the current state of the economy has caused them to pivot their financial plans and goals. As the cost of living has increased and consumers navigate a high-interest rate environment, individuals have scaled back on discretionary spending such as dining out and travel and continue to hold off on big-ticket purchases such as cars or homes.

“While credit card usage may seem like the quickest and easiest solution to tackle elevated costs, racking up expenses this way can lead to further financial strife in the form of expensive interest charges.” — Erica Sandberg, Consumer Finance Expert with BadCredit.org

As shown in earlier findings, reducing spending is a popular and effective strategy Americans are relying on to address continued higher costs. While cutting down on expenses like service subscriptions, dining out, and entertainment, among other areas may not be ideal, this approach can help individuals build savings, add more cushion to any emergency expenses, and further support long-term financial goals.

As America continues to battle financial literacy and economic challenges, signs of resiliency and hope endure. Our findings discovered that a good majority of respondents have a strong understanding of the basic financial principles behind their credit, but not enough people are regularly keeping up with their credit reports and scores. 

Our survey also looked at how Americans have been responding to the higher cost of living. A significant portion of respondents disclosed that they have had to pivot their financial goals and plans due to the current state of the economy. Additionally, 75% of individuals disclosed that they have reduced their spending in response to rising costs. 

The latest Federal Reserve meeting cut interest rates to help elevate the economy. With that in mind, consumers, like those we surveyed, may plan to get back on track with their long-term financial goals such as buying a new home or car with less sticker shock. That makes it even more important to have a strong understanding of where your credit score stands as providers will look at your score to determine whether to approve your financing for these purchases. 

At the end of the day, the latest survey illustrates an important takeaway and opportunity to empower individuals with the right educational resources they need to master key financial concepts and skills so they can build a brighter future. 

In September 2024, we surveyed 500 individuals to gauge consumers’ understanding of key financial concepts and credit management practices. The respondents ranged from ages 18 to 65+, with an average age range of 36 to 45. Participants were 56% women and 43% men. All survey participants were based in the United States.