2014 Financial Literacy Check Up

In the annual survey conducted for the National Foundation for Credit Counseling we see that it is not just Americans who are credit challenged that come up short when it comes to understanding their personal finances

Understanding Financial Literacy

2014 Financial Literacy Check Up

Here at Auto Credit Express our job is to help borrowers with bad credit reestablish themselves by matching them with dealers who understand bad credit and can deal with a broad range of credit situations.

The loans these dealers offer are, in fact, one of the few avenues many buyers typically have in which they are able to raise their FICO scores while, at the same time, furnishing them with the means to perform a number of daily tasks including getting to and from work.

But one of the shortfalls of such bad credit car loans is addressing the underlying reasons so many consumers find themselves in financial trouble to begin with. The answer to that might be found in the results of the annual survey commissioned by the National Foundation for Credit Counseling and conducted by Harris Interactive.

2014 Consumer Financial Literacy Survey

Here are excerpts from key findings of the survey:

Financial Literacy:

Forty-one percent of adults gave themselves a grade of C, D or F on their knowledge of personal finance. Therefore, it is not surprising that, when asked what their money would say to them if money could talk, about one in five (21%) thought it would say “I’m smaller than most of my friends.” Curiously, about one in five (21%) also thought their money would say “I feel loved and nurtured.”

Budget:

Sixty-one percent of U.S. adults, the highest percentage in six years, admit to not having a budget. One in three adults (34%) indicated their household carries credit card debt from month-to-month, with 15 percent, or more than 35 million people , admitting to rolling over $2,500 or more monthly.

Savings:

The top concerns were evenly divided between insufficient “rainy day” savings for an emergency (16%) and retiring without having enough money set aside (16%). However, the proportion of adults who are spending less when compared to the previous year continues to decline, from a high in 2009 of 57 percent, to a low in 2014 of 29 percent.

Credit Score:

Most adults have not reviewed their credit score (60%) or their credit report (65%) within the past 12 months. A further reflection of the confusion around credit reports and scores is that more than half of all U.S. adults (54%) mistakenly believe that a standard credit report typically contains a person’s credit score(s).

The Bottom Line

Financial literacy begins with understanding personal finance, setting a budget, putting aside savings and knowing your credit scores and the information contained in your credit reports.

But while many situations that result in poor credit are preventable, unexpected circumstances can get the best of even the best laid plans.

Consumers that find themselves in this situation should know that Auto Credit Express matches up applicants with credit issues to dealers that can offer them their best opportunities for auto loan approvals. We also offer several tools to help consumers understand bad credit better, such as our bad credit FAQ.

So if you’re ready to reestablish your credit, you can begin the process now by filling out our online car loan application.

Posted on October 26, 2014 by in Credit Repair
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