The Credit Sesame Personal Finance and Credit Survey reveals that credit use in America is rising at the wrong time
The survey indicates that Americans’ use of credit has increased from this time last year, and higher inflation and interest rates make using credit more expensive
San FranciscoAnd the 29 June 2022 /PRNewswire/ – Financial Wellness Platform sesame credit She conducted a Personal Finance and Credit Survey aimed at assessing the impact of inflation on Americans and their credit in the past year. Survey results show that Americans are relying on credit cards more than ever to deal with the rising cost of goods and services, as more people prefer credit cards over debit cards, an increase from May 2021. The percentage of Americans who use more than half the credit line has also increased by 9 percentage points from this time last year.
The results showed that nearly 1 in 6 Americans do not know their credit score.
Late payments on credit cards have increased 50% in the past year, from 10% in 2021 to 15% in 2022. This fact combined with the Federal Reserve raising interest rates by 0.75%, the most since 1994, means that Americans not only feel the pinch of inflation but also have to pay more just to use their credit cards to make ends meet.
Additionally, the survey found that many Americans have false or uninformed information about credit and their individual credit scores. The results showed that nearly 1 in 6 Americans do not know their credit score, and 40% of respondents do not know that lenders use credit scores to assess the ability to repay loans.
Other selected findings from the survey include:
The number of people who spend more than 90% of their salary on monthly expenses has doubled from 17% in 2021 to 34% in 2022
The number of people spending more than 100% of their salary nearly doubled from 6% in 2021 to 11% in 2022
1 in 6 Americans have experienced a drop in their credit score May 2021 to me May 2022
Perhaps not surprisingly, the number of people worrying about money in 2022 was the most in the “extremely poor” credit score range (74%), compared to 49% in the “fair to good” range and 28% in the “good” range. very much to the “exceptional scale”, but not limited to low-income individuals – people who make between 100 thousand dollars And the 150 thousand dollars The probability of worrying about money triples in 2022. This is partly due to the fact that only 7% of Americans have wage increases that exceed the rate of inflation.
“Inflation and economic adjustments affect us all, but understanding and improving your credit score can protect you from rising costs and interest rates,“Says Adrian NazariCEO of Credit Sesame. “The results of this survey prove how important it is for Americans to take care of their credit health to stave off the negative impact of an economic downturn. “
Sesame Credit for Personal Finance and Credit May 2022 Designed and implemented by Credit Sesame using the Momentive Inc survey tool. General population data was collected online From 20 to 21 May 2022. The survey sample consisted of 1,222 US residents between the ages of 18 and 99 years balanced by age and sex using US Census data. Sample data is accurate to within +/- 2.888 percentage points using a 95% confidence level.
About credit sesame
Credit Sesame is a financial wellness platform, leveraging the latest technology, artificial intelligence and analytics to help consumers achieve better financial stability and create better opportunities for themselves and their families. Credit Sesame has helped millions of consumers improve their credit scores, increase their odds of approval, lower the cost of credit and save money. Strong credit health leads to better financial health and stability sesame cashCredit Sesame helps accelerate consumer credit and financial wellness in one place. Credit Sesame is funded by major institutional and strategic investors. It currently operates in the United States and Canada. For more information about Credit Sesame, visit www.creditsesame.com and follow on Facebook, Twitter and LinkedIn.
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SOURCE Credit Sesame