Knowing Your Credit Score Leads To Higher Credit Scores!

MoneyTips

"Knowledge is power." This famous quote, typically attributed to Sir Francis Bacon in 1597, surely wasn't referring to credit scores – but, according to a new study, knowledge of your credit score does give you the power to manage credit responsibly.

Researchers from the University of Wisconsin, New York University, and the University of Chicago studied over 400,000 consumers of private student loans from June 2015 to June 2017. Sallie Mae offered free access to FICO scores over this period, but some consumers also received quarterly e-mail updates on their score and the underlying factors and calculations.

When e-mail updates were provided, consumers were 65% more likely to view their credit scores. Those who viewed their credit scores were significantly more likely to increase their scores and less likely to have accounts with missed payments.

Why would knowing your credit score help you improve it? The study's authors suggest that a credit score make...

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