COSTA MESA, Calif.,
May 27, 2015 /PRNewswire/
-- Spring and summer mean warmer weather and increased home
sales,* but many homebuyers dread the process. The majority of
homebuyers (95 percent) know that credit is important when
purchasing a home, and those who know their credit scores feel
significantly more prepared to buy according to a new survey
commissioned by Experian. In addition, 45 percent of future
homebuyers say they delayed purchase to work on their credit and
qualify for better interest rates.
"No one likes to go into a lender's office, whether buying or
refinancing, and not know the state of their credit; it makes them
feel helpless," said Becky Frost,
senior manager of consumer education at Experian Consumer Services.
"Our survey shows when people interact with their credit by
tracking it and learning more about the factors that affect it,
they feel more confident about their purchasing power."
The survey results show the difference that credit knowledge
makes in the home buying or refinancing experience.
Knowledge = power:
- People who know their credit scores feel significantly more
prepared to buy a home versus those who do not know their credit
scores (70% vs. 54%).
- The majority of homebuyers understand the importance of their
credit scores in securing favorable interest rates to refinance
their home (62%).
Uncertainty = concern:
- Some groups are uncertain. Future buyers are anxious about
getting good interest rates, with 41 percent concerned their credit
score won't qualify for the best rate available.
- Of the respondents who said they were concerned their credit
status would hurt their ability to purchase a home, 27 percent do
not know their credit score.
- Of the respondents who do not know their credit score, 48
percent are concerned that their credit status could hurt their
ability to purchase a home.
Taking action:
- Fifty-eight percent of future homebuyers indicate that they are
actively working to improve their credit in order to qualify for a
better home loan interest rate. They take specific action, such as
paying off debt (55 percent), paying bills on time (54 percent),
keeping balances low on credit cards (28 percent), protecting
credit card information from fraud/identity theft (20 percent), and
not applying for or opening new credit accounts (16 percent).
Beyond the score:
- Seventy-four percent of recent buyers recognize the impact of
poor credit on securing a good interest rate, but fewer (61
percent) understand the potential effects of identity fraud on the
financing process.
- Sixty-two percent of future buyers are confident about their
credit status, and 60 percent feel financially prepared to buy a
home.
About the survey
The online survey was commissioned by Experian Consumer
Services, produced by research firm Edelman Berland and conducted
as an online survey of 500 buyers from April
7, 2015, through April 14,
2015. Buyers were defined as adults who had purchased a home
within the past year (250 recent buyers) or who plan to purchase a
home in the next year (250 future buyers). The margin of error is
plus or minus 4.4 percent overall. Additional survey details are
available at
http://www.slideshare.net/Experian_US/experian-home-buying-and-credit-survey-report-2015.
About Experian Consumer Services
The Experian Consumer Services division provides credit
monitoring and other informational products, such as identity
protection, to millions of consumers via the Internet. The
organization enables consumers to monitor their credit reports
online, check their FICO® Scores and protect against
identity theft. Its products include Experian Credit
TrackerSM and ProtectMyID®.
Experian Consumer Services has established integrated, cobranded
relationships with leading online financial destinations that
provide consumers with a broad range of comprehensive online
financial products and information essential to managing one's
financial life. For more information, visit
http://www.experian.com.
This press release is provided for general guidance and
information. It is not intended as, nor should it be construed to
be legal, financial or other professional advice. Please consult
with your attorney or financial adviser to discuss any legal issues
or financial issues involved with credit decisions.
About Experian
We are the leading global information services company,
providing data and analytical tools to our clients around the
world. We help businesses to manage credit risk, prevent fraud,
target marketing offers and automate decision making. We also help
people to check their credit report and credit score, and protect
against identity theft. In 2014, we were named by
Forbes magazine as one of the "World's Most Innovative
Companies."
We employ approximately 17,000 people in 39 countries and our
corporate headquarters are in Dublin,
Ireland, with operational headquarters in Nottingham, UK; California, US; and São Paulo, Brazil.
Experian plc is listed on the London Stock Exchange (EXPN) and
is a constituent of the FTSE 100 index. Total revenue for the year
ended March 31, 2015, was
US$4.8 billion.
To find out more about our company, please visit
http://www.experianplc.com or watch our documentary, "Inside
Experian."
Experian and the Experian marks used herein are trademarks or
registered trademarks of Experian Information Solutions, Inc. Other
product and company names mentioned herein are the property of
their respective owners.
Logo - http://photos.prnewswire.com/prnh/20150217/176146LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/home-buying-with-swagger-300088810.html
SOURCE Experian Consumer Services