A joint study with Credit Karma explores the relationship between subjective Financial Well-Being (FWB) and objective credit characteristics and engagement with financial education tools. The report identifies credit report and engagement variables that are significantly related to a consumer’s FWB score, including credit score, credit limit, credit utilization, and the use of a credit simulator tool.
The analysis shows that about two thirds of actively used credit card accounts carry a revolving balance. Once consumers begin to revolve, they do so continuously for about 10 months on average, with approximately 15 percent revolving continuously for two years or more. The longer a balance is revolved, the higher the chances that the consumer will continue to revolve a balance.
The ability of consumers to access various types of credit can be affected by their credit scores, as many lenders require a minimum credit score before credit will be extended. This report finds that consumers with lower credit scores are more likely to apply for credit around peaks and troughs in their scores.
Recent natural disasters, such as Hurricane Harvey in 2017, have significantly impacted some consumers financially. In this report, the Bureau examines how natural disasters are reported in consumers’ credit reports.
BCFP released a new research report on the geographic patterns of credit invisibility. Consumers who are “credit invisible” have no credit histories. This is the third in a series of Bureau studies on consumers with limited credit histories.
Consumers typically pay for telecommunications services monthly, but most providers do not report to consumer reporting agencies unless an account is in collections. In this report, we explore how these debts are reported.