Hispanics Ready to Get Serious about Their Credit Scores

by Shelton on February 27th, 2016

filed under Credit Scores

WILMINGTON, Del.–(BUSINESS WIRE)–While Hispanic Americans are more likely to feel dissatisfied with their
credit scores than Americans overall (37 percent vs. 32 percent), the
Chase Slate 2016 Credit Outlook also finds that Hispanics are expressing
a greater desire to improve their credit score over the next year (72
percent), as compared to Americans overall (66 percent). Seventy percent
of Hispanics believe a higher credit score would lead to greater
happiness and opportunities compared to just 59 percent of Americans
overall. And the survey suggests that they believe they’re on the right
path, with 44 percent of Hispanics saying the choices they are making
today will definitely help their credit worthiness in the future,
compared to 39 percent of Americans.

Key Findings:

  • Hispanics scrutinize their personal finances more than other
    consumers. A majority of Hispanics negatively rate their personal
    financial situation (55 percent fair/poor vs. 45 percent
    good/excellent) – a contrast to Americans overall who are more likely
    to express a positive sentiment than negative (54 percent
    good/excellent vs. 46 percent fair/poor). In addition, just 10 percent
    of Hispanics rate their personal financial situation “excellent,”
    compared to 17 percent of Americans overall.
  • Ambivalence, fear lead many Hispanics to not check their credit
    score. Just over half of Hispanics (54 percent) have checked their
    credit score in the last year, compared to 60 percent of Americans
    nationally. Additionally, one-in-five Hispanics (20 percent) has never
    checked their credit score – six points higher than all Americans (14
    percent). Among Hispanics who did not check their credit score in the
    last year, when asked why, 40 percent said it’s because they had no
    reason to, 35 percent indicated that they meant to, but didn’t get
    around to it, while nearly one-third (29 percent) said it’s because
    they were afraid it would be a low number.
  • Hispanics recognize the value of checking their credit score (or
    their spouse’s). Although Hispanics appear less engaged with their
    credit history than Americans overall, they are more likely to believe
    they would have benefited from checking their score at certain
    instances in their life (60 percent vs. 53 percent), particularly
    before applying for a loan (57 percent among Hispanics) and before
    trying to buy a house (49 percent among Hispanics). Also, one-in-five
    of those Hispanics who have a spouse or partner (20 percent) indicate
    that they would have benefited from knowing their spouse’s or
    partner’s credit score before getting married.
  • Hispanic Millennials are even more determined to improve their
    credit scores. Although Hispanic Millennials are more positive
    about their personal financial situation than all Hispanics (50
    percent of Hispanic Millennials rate it Good/Excellent vs. 45 percent
    of all Hispanics), they are more likely to want to improve their
    credit score in 2016 (78 percent of Hispanic Millennials vs. 72
    percent of all Hispanics). Big factors in spurring the desire of
    Hispanic Millennials to improve their credit score are their interest
    in buying a house in the near future (63 percent of Hispanic
    Millennials vs. 50 percent of all Hispanics) and starting a family (26
    percent of Hispanic Millennials vs. 16 percent of all Hispanics).
  • Hispanics plan to take an ‘all bills, no-frills’ approach to
    improving their credit scores. The most popular plans among
    Hispanic consumers to improve credit scores include paying bills on
    time (65 percent), paying off debt (60 percent) and keeping credit
    card balances relatively low (41 percent).

Quotes:

“The optimism that Hispanics are feeling about improving their credit
score in 2016 reflects the passion and commitment to do better for
themselves and their families,” says personal finance expert and Chase
Slate financial education partner Farnoosh Torabi. “My advice to all is
don’t be afraid of knowing your credit score and understanding the
factors that impact it. Contrary to popular belief, checking your credit
score yourself does not negatively impact the score. This is the first
and most important step to start making improvements and to stay on top
of your credit health.”

“I am encouraged to see that so many Americans are motivated to improve
their credit score this year, chiefly because healthy credit can open
doors in the short-term, long-term and throughout one’s lifetime,
really. With more men and women on the path to achieving their goals,
that happier life they’re seeking could be closer within reach,” says
Pam Codispoti, President, Consumer Branded Cards, Chase Card Services.

Chase Slate cardholders have access to the Credit
Score amp; More feature that Credit Dashboard provides a
comprehensive view of their credit health through free access to their
monthly FICO® Score, along with the reasons behind the score,
the top positive and negative factors impacting it and tailored tips for
improving credit health overtime. The feature is available online at Chase.com.

About the Chase Slate 2016 Credit Outlook Survey

The Chase Slate 2016 Credit Outlook Survey was commissioned on behalf of
Chase Card Services to measure Americans’ understanding, attitudes and
perceptions around credit and credit health. The survey was conducted
via an online survey by Stratalys Research, an independent research
company. Interviews were conducted from December 2 – December 15, 2015
among a nationally representative sample of 1,000 respondents age 18 and
older, plus an oversample of 450 Hispanics to total 600 Hispanic
interviews. The credibility interval is +/- 3.6% for a sample size of
1,000, +/- 4.65% for a sample size of 600, and larger for subgroups.

About Chase

Chase is the US consumer and commercial banking business of JPMorgan
Chase amp; Co. (NYSE: JPM), a leading global financial services firm with
assets of $2.3 trillion and operations worldwide. Chase serves nearly
half of America’s households with a broad range of financial services,
including personal banking, credit cards, mortgages, auto financing,
investment advice, small business loans and payment processing.
Customers can choose how and where they want to bank: 5,400 branches,
17,000 ATMs, mobile, online and by phone. For more information, go to Chase.com.
For more information about Chase Slate, go to ChaseSlate.com.

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