Almost 2 In 5 Don't Know How Credit Is Scored

MoneyTips

Are credit scores a mystery to you? Do they seem like random numbers generated by bureaucrats armed with dartboards and Ouija boards?

A new survey by CompareCards.com finds that 37% of Americans have no idea how their credit score is calculated. Worse yet, another 14% wouldn't indicate whether they knew how their credit score worked – meaning that just less than half of Americans have confidence that they properly understand credit scores.

If you don't know how a credit score works, how can you tell whether you're doing the right things to improve your credit standing? You can always try a tool that Americans used before the invention of the credit score – common sense. A different survey question suggests that most Americans still grasp good credit principles, even if they don't fully understand credit scores.

When asked what the biggest factor was in determining a credit score, nearly half of respondents correctly chose how often you

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