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Scores?

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A new survey has found that the majority of consumers do not understand what credit scores measure, what good and bad scores are, and how scores can be improved. Only about one-third of consumers correctly understand that credit scores indicate the risk of not repaying a loan, not factors like financial resources to pay back loans or knowledge of consumer credit. The study by Opinion Research Corporation for the Consumer Federation of America and Providian, revealed that less than half of consumers know that electric utilities, home insurers, and landlords often use credit scores to decide whether to sell a service and at what price. The research also found that more than one-half incorrectly believe that a married couple has a combined credit score. Only 12% correctly identified the low 600s as the level below which they would be denied credit or have to pay a higher, sub-prime rate. And, only 13% correctly understand that scores above the low 700s usually qualify them for the lowest rates. To learn more of scores visit: “http://www.consumerfed.org/score”:http://www.consumerfed.org/score

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