“Why Monitoring Your Credit Score Matters More Than You Think”

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Experian Survey on Tracking Everyday Activities

Experian conducted a survey of 1,022 consumers in November 2023 to understand how or if they track their daily activities. The sample was collected using a third-party company and was not from Experian’s consumer credit database.

New Year’s Resolutions: A Common Challenge

By mid-January, many people have already abandoned their New Year’s resolutions. According to popular belief, January 12th is “Quitter’s Day,” the day when most people give up on their yearly goals. Research supports this, showing that nearly half of us abandon our resolutions within the first month.

Financial goals are often at the heart of these broken resolutions. Common resolutions focus on health, such as losing weight, or personal finances, like spending less and saving more. However, some people do manage to keep their resolutions throughout the year. What’s their secret?

Tracking Your Credit Score

Consumers are more likely to monitor health and fitness data, such as weight, sleep, and step counts, than their credit scores, according to a recent Experian survey.

About two-thirds of respondents said they track their physical activity, like steps taken and sleep, on a monthly basis or more frequently. However, less than half (48%) check their credit score at least monthly. Interestingly, 61% of those under age 45 (mainly millennials and Gen Z) check their credit score at least monthly, compared to 41% of Generation X and baby boomers.

Accountability: The Key to Success

Accountability is crucial for keeping resolutions on track. Studies show that those who write down their goals and track their progress are twice as likely to achieve them. Businesses have long used SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound) to help employees reach their objectives. While tracking SMART goals might be too cumbersome for the average person, finding a system to track your financial goals can be beneficial.

Technological advances, especially smartphones, now allow individuals to measure many of their specific, achievable goals in 2024. However, tracking financial goals with a smartphone app is still less effective than tracking fitness goals. Steps and weigh-ins are easier to track than spending from multiple accounts for daily purchases. It’s at these micro-levels—counting steps, calories, or pennies—that resolutions are often made or broken.

Fitness and Finance Resolutions for 2024

Despite the challenges, there’s a high demand for technological accountability in tracking fitness and finance goals. A November 2023 Forbes survey found that while improving finances is a popular resolution, it remains secondary to improving fitness in the new year.

The Bottom Line

Tracking your finances may not be as seamless as tracking fitness metrics with a smartwatch, but financial planners and economists have studied consumer savings behavior for years. Behavioral economics has positively impacted how much most workers save for retirement by implementing automatic savings increases annually for many 401(k) and other workplace retirement savings plans.

For credit improvement, establishing a pattern of on-time payments is key. Experian Boost® allows users to add utility bills and other payments to their Experian credit report, potentially improving their FICO® Score and helping them achieve financial goals in 2024. Experian Boost has improved FICO® Scores by an average of 13 points among users who saw a score increase.

It’s understandable that more people monitor their physical activity more frequently than their credit. After all, credit scores don’t change as often as step counts, and not all consumers need new credit in the short or intermediate term, which may lead them to check their credit score less often.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of tracking your financial goals. If you need assistance with any mortgage services, call us at 213-732-3074. We’re here to help you achieve your financial resolutions and make your homeownership dreams a reality.

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