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Things are looking up when it comes to finances and managing credit according to a new study that looked at how African American, Asian and Hispanic communities feel about the economy in comparison to the population at large. While diverse communities feel more optimistic and see credit as a way of meeting their goals whether that means buying a home, a new car or something else, they also want to learn more about how to use it effectively.
The third How America Buys and Borrows study by Wells Fargo & Company was conducted in June, 2015, and during that period they interviewed 1,000 minority consumers, about how they felt about their finances, credit and managing credit. They found that 88% of consumers in diverse communities saw a brighter economic future, when compared with the general population, up 7% from 2014.
Personal finances looking up
How did people in diverse communities feel about the coming year when it comes to their personal finances? They see sunnier times, with 60% saying their personal situation would be somewhat or much better next year, up 12 % from the general public. Going hand in hand with this optimism was the belief that credit can be a very useful tool if used correctly and responsibly, which is on par with everyone else.
What about credit scores? While 51% of the general population is proud of their credit scores, the numbers really vary when broken down by community. The Asian community outdid the general population with 59% saying they are happy with their scores, while 34% of African Americans and 48% of Hispanics felt proud of their scores.
Confidence lags behind
Optimism is clearly up but confidence hasn't caught up yet, with people in diverse communities feeling like they may need more education, so they can make more effective choices when it comes to credit and borrowing, when compared with the public at large.
This is the second batch of information released by the Wells Fargo study, timed to support the annual American Bankers Association’s Get Smart About Credit campaign.
“With optimism high, it’s especially important that we continue to offer our diverse customers access to the information and resources they need,” said Shelley Freeman, head of Wells Fargo’s Consumer Credit Solutions group.” To get tips and more information on managing credit and borrowing people can visit their website.