myFICO Survey: Consumers Concerned About Credit Card Debt, Plan
Conservative Holiday Spending
SAN JOSE, Calif., Dec. 4, 2012 /PRNewswire/ -- myFICO, the
consumer division of FICO (NYSE:FICO), the company that invented
the FICO® Score, revealed that credit card debt
continues to be consumers' biggest financial worry as the new year
approaches. According to a November survey, nearly one third of
consumers are cutting back on holiday spending and plan to practice
conservative credit behaviors this year. Only 20 percent will
consider opening new credit card accounts, and approximately 65
percent expect to charge less than $500 on their credit cards – a figure that most
consider moderate and within their budget.
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Credit Card Use and Repayment Time to Increase in
2012
Approximately half plan to use credit cards exclusively for all
their holiday purchases, while nearly a third will reserve credit
cards only for more expensive gifts. However, 80 percent of
consumers will use a fraction of their credit limit – less than 25
percent – which tends to bode well for a consumer's FICO Score.
"Keeping revolving credit low can have a positive impact on an
individual's credit score, since this accounts for almost 30
percent of a typical score," said Anthony
Sprauve, spokesperson for myFICO.
Nearly a quarter of respondents will need more than three months
to pay off their 2012 holiday expenses, compared to 18 percent in a
similar survey conducted in 2010.
"While consumers are using credit cards more this year, it's
important not to get carried away," said Sprauve. "Payment history
is the most influential factor when determining an individual's
FICO Score; therefore it's critical to pay at least the minimum
amount on all credit cards every billing cycle."
Concern about Fraud and Credit Score Impact
According to the myFICO holiday spending survey, about 14
percent of respondents indicated they are concerned about the
effect of holiday spending on their FICO Score. Additionally, 62
percent are concerned about fraud or identity theft during the
holidays; surprisingly, 20 percent of these individuals take no
steps to protect themselves.
"Tools such as Score Watch offered by myFICO can be used by an
individual to detect important changes to that individual's credit
report, allowing them to become aware of fraudulent charges or
inaccuracies, so they can take immediate corrective action to
minimize negative impacts to their FICO Score," said Sprauve.
"Regularly monitoring your bank statement and credit report for
errors can be instrumental for identifying fraudulent charges and
maintaining an accurate credit report."
About myFICO
myFICO is the consumer division of FICO, the company that
invented the FICO® Score, a credit risk score which
serves as a de facto credit score used by the vast majority of
lenders in the United States.
myFICO offers informative free credit educational information that
helps people understand actions they can take to achieve and
protect their overall financial health. www.myfico.com
About FICO
FICO (NYSE:FICO) delivers superior predictive analytics
solutions that drive smarter decisions. The company's
groundbreaking use of mathematics to predict consumer behavior has
transformed entire industries and revolutionized the way risk is
managed and products are marketed. FICO's innovative solutions
include the FICO® Score — the standard measure of
consumer credit risk in the United
States — along with industry-leading solutions for managing
credit accounts, identifying and minimizing the impact of fraud,
and customizing consumer offers with pinpoint accuracy. Most of the
world's top banks, as well as leading insurers, retailers,
pharmaceutical companies and government agencies, rely on FICO
solutions to accelerate growth, control risk, boost profits and
meet regulatory and competitive demands. FICO also helps millions
of individuals manage their personal credit health through
www.myFICO.com. Learn more at www.fico.com. FICO: Make every
decision count™.
For FICO news and media resources, visit www.fico.com/news.
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