Transforming your credit score is not as difficult as you might think. And if you want a better score, then you're definitely not alone. The inaugural Capital One Credit Confidence Study released on Thursday gathered answers from 2,300 American respondents to determine their views on credit.
Despite the current state of the economy, Capital One's study finds that many Americans are confident and optimistic when it comes to their personal credit. The nationwide study was released in observance of National Get Smart About Credit Day which took place on Oct. 20. Eighty-six percent of Americans surveyed said they want to increase their credit score. And surprisingly, 32 percent said they would rather have excellent credit than received one million dollars.
Consumers recognize the importance of healthy credit but persistent myths are keeping some from improving their profile with the credit reporting bureaus. Here are other key findings:
· Myth #1: Nearly a third (31 percent) think that closing unused cards is good for credit
· Myth #2: More than half (53 percent) incorrectly believe paying their cell phone bill builds their credit score
· Myth #3: More than half (52 percent) believe that holding a credit card balance is good for their credit.
Keep in mind that the average age of your accounts is a significant part of your credit score. And keeping older accounts open can increase your score. Second, paying cell phone bills on-time doesn’t positively build your score, but you don't want to be late with your bills. Finally, you should pay your credit card bill in full and on time each month.
With constructive changes in behavior, consumers can build and repair their credit profile. Capital One has a free mobile app called CreditWise that allows you to check your credit score at any time.
"No two credit journeys are identical, and Capital One recognizes that people need to be empowered to make wise choices that make sense for their own situation when it comes to credit," said Jennifer Jackson, Managing Vice President at Capital One. "We embarked on this national study to bring people’s journey to credit success to the forefront. Achieving better credit is core to everyone’s financial health, and this study revealed that there is a strong spirit of optimism; however, there is a need for more education and action for people to achieve credit success."
Millennials also want excellent credit. The Capital One Credit Confidence Study finds that 90 percent of those between the ages of 18 and 24 would rather have an excellent credit score than access to social media. For many millennials, understanding how to safeguard their credit health is key to reaching their dreams. Also, more than half of respondents associated their personal credit to their sense of self-esteem. And 48 percent viewed credit score as a reflection of a person's character.
