In a 2004 survey, one out of every four credit reports contained serious errors that could result in the denial of credit, according to U.S. PIRG – U.S. Public Interest Research Group. The same survey said that 79% of all credit reports had errors!

In 2005, a CFA – Consumer Federation of America and Fair Isaac, concluded that 49% of consumers do not understand credit score as credit risk.

According to the Federal Trade Commission (www.ftc.gov) Florida was the number 6 in id theft in 2005. The U.S. Secret Service says that id theft is around US$ 750 millions per year around the nation.

In March 2007, according to NFCC – National Foundation for Credit Counseling survey published almost 51% of American consumers never asked for a credit report.

8% of those who asked for the credit report do not have a clear understanding.
29% have no idea how much APR they pay.
4% have no idea what kind of mortgage program they have.
5% do not know their mortgage rate.
29% do not know that they have the right to a free annual credit report.
27% do not think that it is important to have any kind of financial advice when buying a car or a house.

In July 2007, Bankrate.com released the findings of a national poll which found that 45% of consumers do not know their credit score. Furthermore, 32% of Americans have never checked their credit report, a report which is now offered free to all consumers on a yearly basis.

90% of major American banks use FICO score.

Conclusion: that’s why lenders do what they do. They take advantage of the market due to American consumers’ lack of knowledge.