What everyday consumers really think about their credit in 2026

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. Many are checking their scores, setting financial goals and trying to improve their financial health.

That's good news. But the same research also reveals that many Americans are confused about how credit scores work, and those misconceptions persist. Seeking accurate information can help address those misunderstandings.

Here's what FICO’s data shows, and what it means for you.

Most Americans Are Taking Their Credit Scores Seriously

Eighty-nine percent 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%), seeking out financial literacy resources (16%) and monitoring interest rates to time their credit applications (76%). Across every generation, credit remains a concern.

Still, gaps remain. Roughly 1 in 10 Americans (11%) say they don't know where to find their credit score. Among Gen Z (ages 18-29), that figure rises to 17%. Nearly 1 in 5 Americans (17%) say they don't feel they have the tools or knowledge to improve their score. Gen Z respondents are most likely to feel this way (27%), compared with 19% of Millennials ages 30-45, 16% of Gen X respondents ages 46-61, and 10% of  Baby Boomers ages 62-80. About 1 in 4 Americans (23%) say they haven't received sufficient education about credit scores, rising to 30% among Gen Z respondents.

Gaps in credit knowledge are common, but access to accurate information can help address them.

Tip: Checking your own credit score is a soft inquiry and does not affect your FICO Score. Checking it monthly can help you track changes over time. Many credit card issuers and financial institutions offer free access to scores.

The Biggest Credit Myths  and the Truth Behind Them

Even the most credit-confident consumers get it wrong sometimes. Common misconceptions can lead to confusion about how credit scores work.

Does carrying a small balance on your credit card help your score? 

Fifty-five percent of Americans believe this, up from 50% in February 2026. The truth: It doesn't. You don't need to carry a balance to build credit.

Does checking your credit score lower it? 

Twenty-seven percent of Americans believe this, up from 22% earlier this year. The truth: Checking your own score is a soft inquiry and does not affect it your FICO Score. Hard inquiries, which occur when a lender checks your credit as part of a credit application, can affect your score.

Can shopping around for interest rates hurt your score?

Thirty-three percent of Americans believe this. The truth: Multiple inquiries for the same type of loan within a short window are typically counted as a single inquiry in FICO Score calculations. Shopping around can help you compare rates without unnecessary concern about the effect on your score.

Can closing old credit cards help improve your score? 

Thirty-eight percent of Americans believe this. The truth: Closing a credit card can lower your score by reducing your total available credit and increasing your credit utilization ratio. Closing an account does not necessarily shorten your credit history immediately.

Is income directly factored into your credit score? 

Sixty-five percent 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 on information in your credit report, including payment history, balances, account age, new credit, and credit mix.

Are all credit scores calculated the same way? 

Fifty-one percent 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 Scores for mortgage, auto and credit card decisions. These scores may differ from the score you see on a free monitoring app.

Tip: Not all credit scores available in free credit checking apps are the same. Different scoring models can produce different results, so check which score and scoring model a lender uses when evaluating a credit application.

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 by generation. Baby Boomers are most likely to connect credit management to overall financial health and wellness (74% vs. 33% of Gen Z, 43% of Millennials, 54% of Gen X). Younger generations are more likely to link it to specific near-term goals:

• Purchasing or leasing a vehicle: 41% of Gen Z, 33% of Millennials vs. 25% of Gen X, 20% of Baby Boomers
• Purchasing a home: 37% of Gen Z, 26% of Millennials vs. 17% of Gen X, 9% of Baby Boomers
• Increasing credit limits: 32% of Gen Z, 31% of Millennials vs. 19% of Gen X, 13% of Baby Boomers
• Taking out a personal loan: 26% of Gen Z, 16% of Millennials vs. 10% of Gen X, 3% of Baby Boomers
• Refinancing a home or taking out a HELOC: 20% of Gen Z, 13% of Millennials vs. 7% of Gen X, 4% of Baby Boomers

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 down balances, avoid opening unnecessary new accounts in the months before you apply, and check your credit report for errors. Even modest improvements to your score before you apply can translate to meaningfully better rates and terms.

Financial Pressure Is Pushing Many Americans Toward Credit

The data reflects the financial pressures many American households face. Forty-three percent of homeowners say their monthly housing costs have made it harder to keep up with other expenses. That  figure rises 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:

• Thirty percent 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.
• Thirty percent relied on credit cards over the past year to make ends meet due to medical expenses.
• Twenty-eight percent 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.
• Twenty-seven percent 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 (BNPL) 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%).

For many  Americans, credit is functioning as a financial buffer during difficult periods. The key is managing that credit use in ways that don't compound the pressure.

Tip: If you're using credit cards or BNPL to manage a tight period, keep an 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 receive regular financial help from one or both parents.

Among those receiving ongoing financial support, gratitude is the most common feeling (43%). But stress and embarrassment are also common, with 37% reporting each. Receiving help from someone you love doesn't necessarily make the situation feel simple.

Interest Rates Are on Everyone's Mind

Seventy-six percent 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 or would actively monitor rates to try to get the best rate when applying for credit. Gen Z leads this behavior:  64% monitor or 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 and fees (38%) and qualifying for the mortgage (35%) round out the list.

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, and compare offers.

The Takeaway

The 2026 data shows that Americans are engaged, motivated and actively working on their financial health. The gap is information rather than effort. Much of what holds people back from a stronger credit score comes down to misconceptions that can be corrected.

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.

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 are 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.  

This story was produced by FICO and reviewed and distributed by Stacker.