Consumers Are Paying Attention to Credit — But Getting Key Details Wrong

Survey finds consumers are prioritizing credit health, but misunderstandings remain, reinforcing the need for ongoing financial education.

04/08/2026 2:00 P.M.

As Financial Literacy Month highlights the importance of credit management, new data reveals a paradox: while 83% of consumers are actively trying to improve their credit scores, many are operating under incorrect assumptions about what actually helps.

A recent FICO survey, featured in the ABA Banking Journal, found that confusion still remains about the basics.

For example, nearly three in four respondents “incorrectly believed that carrying small balances on credit cards helps improve credit scores” or were unsure if it does, the report found.

Misunderstandings extend beyond credit card use. Two-thirds of respondents either incorrectly believed their income affects their credit score or were unsure, highlighting a continued gap in financial knowledge.

At the same time, the data also shows strong consumer engagement in managing their financial health. According to a FICO blog post, 88% of Americans took active steps to prioritize their financial health in the past year, with more than a third checking their credit scores monthly or more often.

“This isn’t passive interest; it’s active financial stewardship,” wrote Jenelle Dito, vice president of consumer empowerment and partnerships at FICO, pointing to increased awareness and engagement across all demographics.

That engagement is especially strong among younger consumers, with Gen Z and Millennials leading in frequent credit monitoring.

Despite these positive indicators, challenges remain. The ABA article notes that nearly one in four respondents said they made less than their minimum payment or skipped a payment in the past year due to inflation. At the same time, about 23% reported opening new credit cards to create financial flexibility, underscoring how consumers are navigating financial pressure while trying to maintain or improve their credit.

The findings reinforce a key message behind Financial Literacy Month: while consumers are paying attention and taking action, continued education is critical to ensure those efforts lead to better outcomes.

For the accounts receivable management industry, the results also underscore the importance of clear communication and consumer education around credit reporting, repayment behavior and financial responsibility.

Download the “FICO® Score Credit Insights, Spring 2026 Edition” study.

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