This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

MyFICO Survey: Consumers Concerned About Credit Card Debt, Plan Conservative Holiday Spending

SAN JOSE, Calif., Dec. 4, 2012 /PRNewswire/ -- myFICO, the consumer division of FICO (NYSE:FICO), the company that invented the FICO ® Score, revealed that credit card debt continues to be consumers' biggest financial worry as the new year approaches. According to a November survey, nearly one third of consumers are cutting back on holiday spending and plan to practice conservative credit behaviors this year. Only 20 percent will consider opening new credit card accounts, and approximately 65 percent expect to charge less than $500 on their credit cards – a figure that most consider moderate and within their budget.

(Logo: http://photos.prnewswire.com/prnh/20121022/CG96006LOGO)

Credit Card Use and Repayment Time to Increase in 2012

Approximately half plan to use credit cards exclusively for all their holiday purchases, while nearly a third will reserve credit cards only for more expensive gifts. However, 80 percent of consumers will use a fraction of their credit limit – less than 25 percent – which tends to bode well for a consumer's FICO Score. "Keeping revolving credit low can have a positive impact on an individual's credit score, since this accounts for almost 30 percent of a typical score," said Anthony Sprauve, spokesperson for myFICO.

Nearly a quarter of respondents will need more than three months to pay off their 2012 holiday expenses, compared to 18 percent in a similar survey conducted in 2010.

"While consumers are using credit cards more this year, it's important not to get carried away," said Sprauve. "Payment history is the most influential factor when determining an individual's FICO Score; therefore it's critical to pay at least the minimum amount on all credit cards every billing cycle."

Concern about Fraud and Credit Score Impact

According to the myFICO holiday spending survey, about 14 percent of respondents indicated they are concerned about the effect of holiday spending on their FICO Score. Additionally, 62 percent are concerned about fraud or identity theft during the holidays; surprisingly, 20 percent of these individuals take no steps to protect themselves.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,757.91 +138.40 0.79%
S&P 500 2,077.42 +14.31 0.69%
NASDAQ 5,013.1230 +26.2560 0.53%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs