The survey, developed by Credit Sesame using Momentive Inc.’s survey tool, polled 1,222 US residents online age 18 and over between May 20 and 21. It was issued to assess the impact of inflation on credit use over the past year. The following trends highlighted in the survey make life more expensive for consumers relying on credit:

Credit card users carrying a balance of more than half of their credit limit increased by 9%.Late payments increased by 50%.The number of people using credit cards jumped 7%, while those using debit cards dropped 3%.

“Inflation and economic adjustments affect us all, but understanding and improving your credit score can protect against these rising costs and interest rates,” said Adrian Nazari, CEO of Credit Sesame, in a press release on the company’s website. “The results of this survey prove how important it is for Americans to take care of their credit health to stave off the negative impact of any economic downturn.”     Inflation makes life more expensive across the board. Incomes are not keeping pace with the increased costs of goods and services. In fact, the press release noted that only 7% of Americans received pay raises that exceeded the increased rate of inflation. As more Americans turn to credit, the higher rates add an additional financial burden to households. Additional findings from the survey include:

The number of people spending more than 90% of their paycheck for month-to-month expenses doubled from 17% in 2021 to 34% in 2022.The number of people whose spending exceeds their income in a pay period almost doubled from 6% in 2021 to 11% in 2022.One in six Americans saw their credit scores decrease between May 2021 to May 2022. Consumers with credit scores in the poor-to-very-poor range are most likely to experience stress over money – 74%.

Unsecured credit cards for people in the rebuilding stage. It’s important to maintain a high credit score, or work to improve a lower score, because the score dictates what interest rate – the amount you’re charged by a lender to borrow its assets – you’ll receive when taking out loans or applying for credit cards. The type of deals offered for cell phone plans, insurance products, or deposits required for utilities, for example, also can be affected by your credit score. The lower your score, the more you will pay, as creditors deem you as a high financial risk. Let say, for example, that you finance a $10,000 used car over 48 months. Customers with excellent credit scores (typically 750 or more) would qualify for an average rate of 8.18%. You will pay $245 a month and $1,759 in interest over the life of the loan. Car buyers with fair credit scores (600-699) are looking at average interest rates of 14.89%. A seven point interest rate jump will increase your monthly payments to $278 per month for a total of $3,332 in interest over the life of the loan. A 51-point drop from 750 in your credit score could cost a buyer an additional $1,573 in interest for the exact same vehicle. Maintaining the highest possible credit score allows you to access credit at the lowest rate. Healthy credit affects your bottom line directly. FICO, the organization responsible for developing the FICO credit score, suggests three main tips that anyone can follow to improve their credit score:

Fix any errors on your credit report. Retrieve a free copy of your credit report from the three credit reporting agencies – Equifax, Experian, and Trans Union – once a year. A study by the Federal Trade Commission showed one in four people found an error on their credit report that could impact their credit score.Pay your bills on time. Payment history is the largest factor used to determine your credit score. Even one 30-day late payment can have a significant impact on your score. Adding paying reminders or setting up auto-pay services are great ways to ensure that your bills are paid on time. Improving your score will take time, but with consistency and an on-time payment history, your credit score will improve.Reduce the overall amount of debt. Keeping your debt utilization rate below 30% is another key factor that can improve your credit score. Maintaining an outstanding debt balance that is no more than 30% of the available credit should be your goal. Therefore, creating a plan to reduce the amount of outstanding debt will save you money each month. The amount of interest you’ll pay each month is calculated based on the outstanding balances owed on loans or credit cards.

Lowering your expenses by qualifying for the best interest rates and paying less interest overall is one tool consumers have to reduce the impact of rising inflation. The National Foundation of Credit Counselors can assist with locating nonprofit credit counselors for those who need additional support getting problems with debt and credit card abuse under control.  Credit cards for people with bad credit The card’s APR is fairly high, but the trade-off is that it doesn’t require a cash deposit up front. Initial credit limits are lower, but your account will be reviewed every six months. Lower credit limits are helpful for those in the rebuilding stage because it limits the chances of overspending. With wise management, your credit limits could be increased.  Pros

No security deposit required  Gradual credit line increase with positive usageCash back rewards

Cons

Annual fee that increases after the first year Steep foreign transaction feesInitial low limit restricts charging power

View more credit card options for those who want to improve their credit. A great option for people with no credit. Discover also provides access to your FICO score, which helps you track progress while rebuilding your score.  Pros

No credit score requirement Cash back rewardsNo annual feeAutomatic transition to unsecured card

Cons

Credit line will be low if your security deposit is lowHigh APR Few other perks associated with rewards cards

View a complete list of the 5 best unsecured credit cards for people with bad credit.  Pros

No fees (annual, late/return payment, or foreign transaction)Limited/no credit history requirementGenerous rewards – up to 10% cash back on certain spending categories

Cons

Variable APR range is highNo introductory bonusHigher credit limits may conflict with restrictive budgets

View the complete list of 6 best starter credit cards for people with no credit.