American consumers have a “poor” grasp of the mechanics and importance of credit scores — a lack of knowledge that can cost them thousands of dollars needlessly when it comes to obtaining a home mortgage. Simple concepts that point to the need for more consumer education include 1. Less than a third (29%) of respondents were aware of the meaning or uses of credit scores — that they predict the risk of nonpayment of loans; 2. Less than half (47%) knew that Experian, Equifax and Trans Union are national credit bureaus; 3. Less than a quarter (24%) knew that the lowest FICO score needed to qualify for a low-cost mortgage generally is around 700; 4. Only 45 percent of consumers polled were aware that they have more than one score-one each from the three credit bureaus. Scores on the same individual from the bureaus differ at least slightly because each bureau has different information on file. Your Credit Score: How to Fix, Improve, and Protect the 3-Digit Number that Shapes Your Financial Future (2nd Edition) (Liz Pulliam Weston)

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