Wednesday, June 6

Creditworthiness and the Executive Office

I received my daily news briefing from ACA International yesterday morning, which included this article. I'm not sure if this is a good or bad thing! It's encouraging to see that the Financial Literacy program is making some headway!

More Americans Know Creditworthiness Impacts APR Than Can Name Vice President of United States

Published: Thursday, May 31, 2007

Public opinion survey data shows that nearly 80 percent of Americans know their credit history impacts the annual percentage rate (APR) for financing a new car or truck, while 69 percent of Americans report they can identify Dick Cheney as the vice president of the United States.

"Americans may need to bone up on civics, but they understand that their credit track record impacts the APR at which they can finance a new car or truck," said Eric Hoffman, spokesman for AWARE.

Besides a borrower's credit history, a number of variables determine a borrower's APR, including prevailing rates, the amount financed, the terms of the financing contract, the down payment amount, the vehicle make and model, competition, market conditions and special offers.

According to AWARE, several factors may be contributing to consumers' knowledge of the impact their credit history has on an APR quote. "One possible explanation is the increase in higher–quality financial literacy efforts across the country," Hoffman said. "Community based organizations, financial services companies, and government agencies alike are encouraging people to focus on improving their credit, and to check it on a regular basis. This has been made even easier with the availability of free credit reports in recent years."