Credit Sesame’s Personal Finance and Credit Survey Finds U.S. Credit Use Rising at the Wrong Time

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Survey says Americans’ use of credit has increased over the same period last year, rising inflation and interest rates are making it more expensive to use credit

SAN FRANCISCO, June 29, 2022 /PRNewswire/ — Financial Wellness Platform Sesame Credit conducted a personal finance and credit survey designed to gauge the effect of inflation on Americans and their credit over the past year. Survey results show that Americans are relying on credit cards more than ever to meet the rising cost of goods and services, with more people preferring credit cards to debit cards, an increase from compared to May 2021. The percentage of Americans using more than half their credit limit also rose 9 percentage points from the same time last year.

Credit card late payments have increased by 50% in the past year, from 10% in 2021 to 15% in 2022. This fact, combined with the increase in interest rates from the Federal Reserve 0.75%, the most since 1994, means Americans are not only feeling the pinch of inflation, but also having to pay more just to use their credit cards to make ends meet.

Additionally, the survey found that many Americans are misinformed or uninformed about credit and their individual credit scores. The results showed that about 1 in 6 Americans don’t know their credit scores and 40% of respondents were unaware that lenders use credit scores to assess loan repayment ability.

Other selected survey results include:

  • The number of people spending more than 90% of their salary on monthly expenses has doubled from 17% in 2021 to 34% in 2022
  • The number of people spending more than 100% of their salary has almost doubled, from 6% in 2021 to 11% in 2022
  • 1 in 6 Americans have seen their credit score decline May 2021 at May 2022

Unsurprisingly, the number of people worried about money in 2022 is highest in the “very bad to bad” credit score range (74%), compared to 49% in the “fair to good” range and 28% in the “very good to good” range. “exceptional”, but not limited to low-income people – people earning between $100,000 and $150,000 are three times more likely to care about money in 2022. Part of that is because only 7% of Americans got pay raises above the rate of inflation.

Inflation and economic adjustments affect us all, but understanding and improving your credit score can protect you against these rising costs and interest rates,” said Adrian Nazari, CEO of Credit Sesame. “The results of this survey prove how important it is for Americans to take care of their credit health to avoid the negative impact of any economic downturn..”

Survey methodology

Credit Sesame Personal Finance and Credit May 2022 was designed and executed by Credit Sesame using the Momentive Inc survey tool. General population data was collected online May 20-21, 2022. The survey sample included 1,222 US residents between the ages of 18 and 99 balanced for age and gender using US Census data. Sample data is accurate to within +/- 2.888 percentage points using a 95% confidence level.

About Sesame Credit

Credit Sesame is a financial wellness platform, leveraging the latest technology, AI and analytics to help consumers improve their financial health and stability and create better opportunities for themselves and their lives. family. Credit Sesame has helped millions of consumers improve their credit scores, increase their chances of approval, lower their cost of credit and save money. Good credit health leads to better financial health and stability, and with Sesame species, Credit Sesame helps accelerate consumer credit and financial well-being all in one place. Credit Sesame is funded by leading institutional and strategic investors. It currently operates in the United States and Canada. For more information on Sesame Credit, visit www.creditsesame.com and follow Facebook, Twitter and LinkedIn.

SOURCE Sesame Credit

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