Personal Finance News
Credit One Highlights Common Credit Missteps in New Campaign
Credit One Bank is launching a new promotion pointing out some all-too-common credit mistakes — while also releasing a survey that shows why this knowledge is needed.
About the Campaign and Survey:
This week, Credit One Bank introduced “The Credit Wreckers.” The new campaign features cleverly-named characters meant to represent common credit mistakes. For example, there’s Max Out (who highlights that consumers should strive to use less than 30% of their available credit), the self-explanatory Miss Payment, and Cancelina — who notes that canceling credit cards can actually have a negative impact on scores. Also in the mix is One Track Jack, who teaches consumers why having only one type of credit can limit their growth.
Accompanying the debut of The Credit Wreckers is a new survey from Credit One (conducted in partnership with YouGov), showing some blind spots consumers have when it comes to credit. For one, 72% of respondents admitted that they were unaware that missed payments could stay on their credit report for up to seven years. Similarly, 70% didn’t realize that they should keep their oldest credit accounts open and active. Meanwhile, 65% of those surveyed said they were unfamiliar with the 30% credit utilization rule of thumb.
Elsewhere in the survey, 48% of consumers said they didn’t know that creditors might close accounts due to inactivity. Lastly, 34% stated that they didn’t understand the difference between a hard credit inquiry and a soft one.
What They’re Saying:
Commenting on the survey findings, Credit One’s Chief Credit Officer Steve Min stated, “Financial setbacks can affect anyone but understanding how credit works is a game-changer when building or rebuilding your financial future. Our recent survey results revealed that many Americans lack foundational knowledge about credit. By providing education resources, Credit One Bank aims to empower individuals to take charge of their credit health and build a stronger financial future.”
Meanwhile, the bank’s SVP of Brand and Advertising Amber Greenwalt said of the new promotion, “The Credit Wreckers campaign brings to life seemingly small actions that can wreck your credit score without you realizing it. Small, incremental changes can have a big impact on improving credit health.” Greenwalk continued, “Our goal with the Credit Wreckers is to simplify complex topics, and provide actionable tips, all while making it fun and relatable. Credit building doesn’t have to be daunting, and this campaign is about making credit easier to understand for everyone, no matter where they are in their financial journey.”
My Thoughts:
Setting aside my feelings on Credit One’s products, I think this Credit Wreckers campaign is actually really fun and smart. As the survey shows, while a few of these notes may seem like common knowledge to some, that’s certainly not the case for others. Therefore, I’m glad that the bank has found an attention-grabbing and easy-to-remember way to bring these financial concepts to consumers.
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