A FICO survey shared with USA TODAY reveals that 59% of Americans do not completely understand the steps involved in buying a home, rising to 64% among first-time homebuyers. Half of prospective buyers actively planning a purchase also lack full understanding, and about one in five underestimate how significantly credit scores affect mortgage rates. FICO vice president Jenelle Dito noted that while interest rates and home prices are headwinds, knowledge gaps are a surprising additional challenge. The survey also found that 85% of Americans view credit score management as a wealth-building strategy, yet a quarter do not know their FICO score, and half of renters are unaware that on-time rent payments can help build credit. Experts recommend monitoring credit scores at least six months before applying and shopping around for mortgages, as multiple inquiries within a 45-day window count as a single inquiry.
Fair Isaac CorporationSurvey highlights consumer knowledge gaps about credit scores and homebuying, but impact on FICO's business is unclear; may increase awareness and use of credit scores, but no direct product or financial event.