Credit Education: Empowering Consumers; Enabling Financial Inclusion

They key to enabling greater financial inclusion is credit education. Worldwide, consumers are aware of the vital role financial education plays in building and maintaining a positive credit history to achieve financial goals. To better understand the distinct profiles, motivations and future outcomes of credit monitoring consumers, TransUnion conducted a global research study examining millions of people who started monitoring their credit through TransUnion for the first time.

We looked at whether credit education may contribute to consumers achieving their financial goals. We also explored subsequent behaviours and outcomes of credit monitoring consumers within the three credit-visible consumer segments of new-to-credit, credit underserved and credit served.

Key takeaways included:

• 43% of consumers used credit monitoring to learn how to manage their credit scores
• 48% of consumers, on average, originated a new credit product within 12 months of starting to monitor their credit
• 33% of consumers said they’d prefer a lender that offers them credit monitoring services when choosing where to originate a new loan

The following countries were included in this study: 

• Brazil
• Canada
• Chile
• Colombia
• Dominican Republic
• Guatemala
• Hong Kong
• India
• Philippines
• South Africa
• United Kingdom
• United States