The Impact of Credit on Your Financial Well-Being

Credit plays a powerful role in everyday life. But for many consumers, it remains difficult to navigate. Building credit confidence starts with understanding how it really works, supported by consistent habits and the right guidance. With that foundation, credit can unlock opportunity, build resilience and support long-term financial well-being.

That belief guided Citi’s recent survey¹, conducted in recognition of National Financial Literacy Month, to better understand consumers’ credit knowledge, behaviors and attitudes. What stood out immediately was that nearly all respondents (99%²) view responsible credit management as foundational to achieving their personal financial goals. At the same time, the findings underscore a clear need for better credit education, tools and solutions to support consumers in building healthy financial futures.

Consumers are actively working to strengthen their financial footing

Nearly all respondents (92%) have taken at least one step in the past year to maintain or improve their credit, and nearly two-thirds (63%) sought out new tools or resources to better manage it. Consumers are not disengaged; there is strong motivation to take action and seek guidance to improve their financial well-being. Nearly half (49%) say their primary reason for using a credit card is to build and maintain their credit score.

Limited credit education leaves some consumers misinformed

Half of respondents (50%) say they only learned how to manage credit after using their first credit card, with another 36% learning through trial and error. This lack of early credit education has resulted in a clear knowledge gap. Roughly two-thirds (68%) find aspects of credit management confusing—particularly how credit scores and interest are calculated—and half (50%) report feeling stressed or anxious about credit. Additionally, only 11% of respondents could correctly identify all the factors that affect credit scores, with income (63%), employment history (50%), and soft credit inquiries (50%) among the most commonly misunderstood. Despite this gap, an encouraging 72% say that better education and tools would increase their confidence in managing credit.

Economic pressures are reshaping financial behavior

Rising living costs (52%), economic uncertainties (37%) and unexpected expenses (32%) were the leading factors driving changes in respondents’ financial behavior over the past year. One in four (25%) say they are using digital tools for real-time credit alerts and monitoring more than they did a year ago, enabling proactive credit management. There is also growing demand for more affordable, flexible credit options, with 76% saying access to a low-cost credit card would make credit easier to manage.

Empowering our customers with credit tools and solutions

These insights highlight a clear opportunity: consumers are motivated to improve their financial well-being, but gaps in credit knowledge and lack of resources can hinder progress. At Citi, we’re committed to supporting our customers with a range of credit options, smart digital tools and trusted educational resources to help turn intent into action.

• Low-introductory rate credit cards: Citi offers various products, including the Citi Simplicity^® Card and Citi^® Diamond Preferred^® Card, with low introductory rate offers to support financial flexibility.
• Promotional offers: Existing Citi credit card customers can take advantage of offers like balance transfers and Flex Loans to help make their lives more flexible while using their existing credit.
• Personal financial management tools: We also provide a variety of tools and educational resources to help Citi credit card customers improve their financial knowledge and understanding, including FICO^® Score access, the Credit Knowledge Center to learn about credit topics, and the Personal Loan Center to explore financial management options, including debt consolidation and other major expenses.

To learn more about Citi credit offerings and resources to support your financial journey, visit www.citi.com/resources/citi-financial-pathways.