What Everyday Consumers Really Think About Their Credit in 2026
, by FICO
The latest FICO research shows where consumer credit knowledge is growing and where myths are spreading
If you've been paying more attention to your credit score lately, you're in good company. The appetite among Americans to understand and manage their credit has never been stronger. According to the 2026 Fall edition of the FICO Score Credit Insights Report — conducted by The Harris Poll on behalf of FICO in July 2026 — Americans are more engaged with their credit than ever before. Most of us are checking our scores, setting financial goals, and actively trying to improve our financial health.
That's good news. But the same research also reveals something worth noting — many Americans are confused about how credit scores work and those misconceptions are spreading. The silver lining? Seeking knowledge and the truth puts you ahead of the majority.
Here's what the data shows — and what it means for you.
Most Americans Are Taking Their Credit Scores Seriously
89% of Americans took at least one step in the past year to improve their financial health. The most popular: checking their credit score (56%, up from 49% in 2024). Nearly three quarters of Americans (72%) check their score multiple times a year — up from 69% in 2024.
People are also cutting spending (43%) and seeking out financial literacy resources (16%) to improve financial health, and monitoring interest rates to time their credit applications (76%). Across every generation, credit is on people's minds.
Still, gaps remain. Roughly 1 in 10 Americans (11%) say they don't know where to find their credit score — and among Gen Z (ages 18-29), that rises to 17%. Nearly 1 in 5 Americans (17%) say they don't feel they have the tools or knowledge to improve their score, with Gen Z most likely to feel this way (27% vs. 19% Millennials ages 30-45, 16% Gen X ages 46-61, and 10% Baby Boomers ages 62-80). About 1 in 4 Americans (23%) say they haven't received sufficient education on credit scores, jumping to 30% among Gen Z.
Feeling behind on credit knowledge is incredibly common. However, closing the information gap is within reach.
FICO Tip: Checking your own credit score is one of the easiest and best habits you can build — and it will never hurt your score. This is called a "soft inquiry," and it has zero impact on your FICO® Score. Make it a monthly habit. You can check your FICO® Score for free through many credit card issuers and financial institutions, or at myFICO.com. For a deeper look, myFICO.com also has free resources to help you understand what's affecting your score and how different factors are weighted.
The Biggest Credit Myths — and the Truth Behind Them
Even the most credit-confident consumers get it wrong sometimes. Common myths are widespread, and they lead people astray.
Does carrying a small balance on your credit card help your score?
55% of Americans believe this — up from 50% in February of this year. The truth: it doesn't. You don't need to carry a balance to build credit.
Does checking your credit score lower it?
27% of Americans believe this — up from 22% earlier this year. The truth: checking your own score is a soft inquiry and has no impact on your FICO® Score whatsoever. The only inquiries that can affect your score are hard inquiries — when a lender pulls your credit as part of an application.
Can shopping around for interest rates hurt your score?
33% of Americans believe this. The truth: rate shopping for mortgages, auto loans, and student loans is specifically accounted for in FICO® Score calculations. Multiple inquiries for the same type of loan within a short window are typically counted as a single inquiry. Don't let fear of score damage stop you from finding the best rate.
Can closing old credit cards help improve your score?
38% of Americans believe this. The truth: closing old accounts can temporarily lower your score by reducing your total available credit and shortening your credit history.
Is income directly factored into your credit score?
65% of Americans either believe this or aren't sure. The truth: income is not part of your FICO® Score calculation and never has been. Your score is based entirely on your credit behavior — payment history, balances, account age, new credit, and credit mix.
Are all credit scores calculated the same way?
51% of Americans believe this or are unsure. The truth: there are multiple credit scoring models, and lenders often use industry-specific versions of the FICO® Score — for mortgage, auto, and credit card decisions — that may differ from the score you see on a free monitoring app. Those scores are not what lenders are actually using. In fact, 90% of top U.S. lenders use FICO® Scores when making credit decisions. So, if the score you're looking at doesn't say FICO® Score, it likely isn't the one that matters most when it counts.
FICO Tip: Not all credit scores available in free credit checking apps are FICO® Scores. Other credit scores can differ by 100 points or more, impacting your ability to qualify for a loan or secure a desired rate. It is important that you check which credit score version a lender is using. myFICO provides consumers access to all FICO® Score versions, the scores used by 90% of top lenders.
Credit Score Goals Are Tied to Major Life Milestones
More than 4 in 5 Americans (84%) say maintaining or improving their credit score is a priority for them in 2027, with nearly half (45%) calling it a major priority.
The reasons differ meaningfully by generation. Baby Boomers are most likely to connect credit management to overall financial health and wellness (74% vs. 33% Gen Z, 43% Millennials, 54% Gen X). Younger generations are more likely to link it to specific near-term goals:
- Purchasing or leasing a vehicle: 41% Gen Z, 33% Millennials vs. 25% Gen X, 20% Baby Boomers
- Purchasing a home: 37% Gen Z, 26% Millennials vs. 17% Gen X, 9% Baby Boomers
- Increasing credit limits: 32% Gen Z, 31% Millennials vs. 19% Gen X, 13% Baby Boomers
- Taking out a personal loan: 26% Gen Z, 16% Millennials vs. 10% Gen X, 3% Baby Boomers
- Refinancing a home or taking out a HELOC: 20% Gen Z, 13% Millennials vs. 7% Gen X, 4% Baby Boomers
FICO Tip: The best time to work on your credit score is before you need it. If you're planning a major purchase in the next one to two years, start preparing your credit now. Pay balances, avoid opening unnecessary new accounts in the months before you apply, and make sure there are no errors on your credit report. Even modest improvements to your score before you apply can translate to meaningfully better rates and terms. myFICO (including the free plan) provides FICO® Score monitoring — helping you keep an ongoing timely eye on your FICO® Score progress.
Financial Pressure Is Pushing Many Americans Toward Credit
The data reflects where many American households stand right now. Forty-three percent of homeowners say their monthly housing costs have made it harder to keep up with other expenses, a figure that climbs to 68% among Gen Z homeowners and 54% among Millennial homeowners.
When budgets get squeezed, Americans are turning to credit tools to manage the gap:
- 30% relied on credit cards to make ends meet as a result of job loss or income disruption in the past year; 29% said the same about BNPL loans.
- 30% relied on credit cards over the past year to make ends meet due to medical expenses.
- 28% turned to credit cards or personal loans to make ends meet in the past year as a result of unexpected caregiving or providing financial support for an aging parent or other dependent.
- 27% sought student loans for education-related expenses in the past year, up from 23% earlier this year — with Gen Z most likely to have done so (53%).
Personal loans are also part of the picture. Just over 2 in 5 Americans (41%) took out a personal loan in the past 12 months. The most common reasons: debt consolidation (33%) and home improvements or repairs (29%). Among Gen Z and Millennials, starting a business was also a notable motivation (36% & 22%, respectively).
Buy Now, Pay Later usage is growing too. Forty-one percent of Americans currently use BNPL services, and among users, nearly a third (30%) are using them more now than a year ago. The top reasons for usage include: financial flexibility during tight budget periods (36%), convenience (35%), and keeping cash available for other necessary expenses (32%).
It means that for a lot of Americans, credit is functioning as a financial buffer during genuinely hard stretches. The key is managing that credit use in ways that don't compound the pressure.
FICO Tip: If you're using credit cards or BNPL to manage a tight period, keep a close eye on your credit card utilization — the ratio of your balance to your available limit. Keeping it below 30% is a good rule of thumb; below 10% is even better for your score. If balances are climbing, even small extra payments above the minimum can make a meaningful difference over time.
Leaning on Others for Financial Support is Common
Nearly 2 in 5 Americans (37%) rely on others for ongoing financial support. Among Gen Z, that figure rises to 74%. Among Millennials, it's 50%. The most common source is parents — 19% of Americans are receiving regular financial help from mom, dad, or both.
If you're in that group, the emotional reality is complicated. Among those receiving ongoing financial support, gratitude is the most common feeling (43%). But stress and embarrassment are just as prevalent — 37% report feeling each. That combination makes sense. Being helped by someone you love doesn't make the situation feel simple.
Interest Rates Are on Everyone's Mind
76% of Americans say interest rates have or would affect when they apply for credit. About 1 in 4 (26%) say they won't apply until rates drop to a certain level. Half say they have/would actively monitor rates to try to get the best rate when applying for credit. Gen Z leads this behavior — 64% monitor/would monitor rates regularly when considering a credit application, compared to 54% of Millennials, 46% of Gen X, and 38% of Baby Boomers.
For mortgage applications specifically, getting the lowest possible rate (52%) and an affordable monthly payment (49%) are the top priorities. Having enough for a down payment (41%), minimizing closing costs/fees (38%), and qualifying for the mortgage (35%) round out the list.
FICO Tip: Don't let rate anxiety freeze you. For mortgage and auto loans, FICO® Score calculations are designed to recognize rate shopping — multiple inquiries of the same type within a short window typically count as one. Shop around. Compare offers.
The Takeaway
The 2026 data tells an encouraging story beneath the challenges: Americans are engaged, motivated, and actively working on their financial health. The gap isn't effort — it's information. The most empowering thing you can take from this research is that most of what holds people back from a stronger credit score comes down to misconceptions that are entirely fixable.
You don't need to carry a balance. You don't need to be afraid to check your score. You don't need to avoid rate shopping. And you don't need to feel like your credit score is something that happens to you rather than something you shape.
The tools are available. The knowledge is accessible. And the score you want is more within reach than most Americans realize.
Survey Method
This survey was conducted online within the United States by The Harris Poll on behalf of FICO from July 20-22, 2026 among 2,078 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 2.7 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact press@FICO.com.
The myFICO Team is made up of credit experts from the company that created the FICO Score — the score 90% of top lenders use to make credit decisions. Whether you're getting ready for a mortgage, buying a car, or just want a clearer picture of where you stand with your credit, we're here to make credit easy to understand.