Study Reveals Which Consumers Are Opening New Accounts

Opening new lines of credit is one way consumers might attempt to boost their credit rating. Findings from a TransUnion study found that consumers who monitor their credit are likely to open new credit cards and auto loans.

The “Impact of Credit Self-Monitoring on Consumer Performance” study was performed with the help of 15 million consumers over a 2 ½ year period looking at those who did and did not monitor their credit.

Of those consumers 3.4 percent who monitored their credit opened a new auto loan compared to only 1.9 percent of consumers who didn’t monitor their credit opening a new auto loan. 6.3 percent of consumers who monitored their credit opened a new credit card whereas 4.3 percent of those who didn’t monitor their credit opened up a new credit card.

Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit told the Wall Street Journal that those monitor their credit health are motivated similarly to how those who monitor physical health are. There are “credit-healthy” consumers who take better care of their credit and riskier consumers who take more risks when it comes to their credit.

In regards to delinquency rates, the study noted that the accounts opened by those who monitored their reports did almost just as well as the new accounts by those who didn’t monitor their credit.

The Takeaway

More and more people are using credit monitoring services not just to fix their credit, but also to figure out when it is a good time to open new accounts. Credit monitoring can be used for many purposes including credit repair and protecting your identity. AmOne can help you get connected with credit monitoring services whether you’re looking to open up new lines of credit or repair your credit. Contact AmOne today to get started.