A recent survey from BadCredit.org reveals that 27% of Americans need to review their credit reports annually, highlighting critical gaps in financial literacy amid inflation and rising interest rates.

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In an era marked by economic uncertainty, a new survey conducted by BadCredit.org, a trusted financial resource for individuals with subprime credit, reveals troubling gaps in financial literacy.

The survey, which included responses from 500 adults across the U.S., found that 27% of Americans need to review their credit reports at least once a year.

This lack of attention to essential financial habits leaves many vulnerable to identity fraud, missed opportunities to improve their credit score and other financial challenges.

Understanding and managing credit has never been more critical as inflation surges and interest rates climb.

Key Findings: Financial Awareness Is Lacking

The survey results underscore a widespread lack of knowledge regarding credit management.

According to Erica Sandberg, a consumer finance expert at BadCredit.org, “People often neglect their financial education until they are already in trouble. Checking your credit report may seem minor, but failing to do so can have major consequences.”

One of the most significant findings is that 26% of respondents were unaware of the importance of maintaining a low credit utilization ratio, which is crucial for a strong credit score.

This gap in knowledge puts many Americans at risk of damaging their credit without even realizing it.

Economic Pressures Force Difficult Financial Decisions

With the rising cost of living, many Americans are forced to make tough financial decisions.

The survey reveals that:

75% of respondents reported reducing their spending in response to rising inflation.
41% have had to dip into their savings to cover basic expenses, indicating the growing strain on household finances.

These findings reflect how high inflation and interest rates push many Americans into financially precarious situations.

Without the necessary knowledge and tools to navigate these challenges, consumers may react to immediate pressures without considering long-term financial implications.

Americans Are Adjusting Financial Plans in Response to the Economy

The survey also found that 72% of respondents have had to adjust their financial plans due to the current economic climate.

Whether postponing major purchases, reassessing savings goals, or altering investment strategies, many Americans are shifting their approach in response to the volatile economy.

Financial expert Bobbi Rebell, CFP®, sees this as an opportunity for growth.

“These challenges should encourage people to learn more about their finances and adapt accordingly,” she said. “Simple changes, like understanding credit management and improving budgeting, can significantly impact.”

Why Checking Your Credit Report Is Essential

Many Americans neglect one of the most straightforward financial habits—checking their credit reports annually.

Failing to review your report can lead to missed opportunities to spot errors, detect signs of identity fraud, or improve your credit score.

Regularly reviewing your credit report ensures you can correct mistakes early, address potential fraud, and keep your credit utilization in check.

This simple step is critical to avoiding more significant financial problems.

Conclusion

The BadCredit.org survey highlights the urgent need for improved financial literacy in the U.S. With 27% of Americans failing to review their credit reports annually and many lacking a basic understanding of credit management, there is a clear opportunity for increased education and financial empowerment.

As the economy continues to present challenges, Americans can take control of their financial future by starting with small but impactful steps: regularly checking their credit reports, maintaining a low credit utilization ratio, and seeking financial education resources.

Individuals can secure more excellent financial stability in an unpredictable economic environment by taking action now.

Trivia

Did you know? According to the Consumer Financial Protection Bureau (CFPB), reviewing your credit report annually can help you catch potential errors that could lower your credit score by up to 100 points, negatively impacting your ability to secure favorable loans or credit.