81% Of Nonprime Americans Do Not Overspend: Study from Elevate’s Center for the New Middle Class
– Survey results from research group reveal that nonprime
consumers are financially savvy and in touch with their financial health
FORT WORTH, Texas–(BUSINESS WIRE)–In the wake of last week’s seismic election, Elevate’s Center for the
New Middle Class today issued new research on how underserved Americans
maintain their financial health, showing that 81% of nonprime Americans
– those with credit scores lower than 700 – spend only what they earn,
or less on everyday expenses.
Elevate’s Center for the New Middle Class is a research-focused body
that engages and educates the public about the growing needs of
individuals who do not have access to traditional credit options. In
this study, the Center outlines how nonprime Americans are financially
savvy in a number of ways, especially in comparison to their prime
counterparts. Additional key findings from the study include:
-
Nonprime Americans check their bank account balances 50% more often
than prime - Nonprime consumers check their credit scores 40% more often than prime
- Two-thirds of this group plan for major expenses
- 67% consider themselves “careful spenders”
- 72% say they know how to create a budget
“Our research shows the narrative about the New Middle Class being less
engaged in their finances is just not the case. In fact, it’s the
opposite in many situations,” said Jonathan Walker, executive director
of the Center. “Because they have fewer financial options, the New
Middle Class clearly recognizes and appreciates the need to be fully
aware of their financial position at any given moment.”
“Although most nonprimes spend what they earn or less, little room is
left for unexpected expenses. When you are one car repair away from a
significant financial problem, you have every incentive to know exactly
where you stand financially,” concluded Walker.
About the Research
The Center’s research compared the responses of 502 nonprime Americans
with 525 Americans with prime credit scores using interviews conducted
June 27-July 1. For more details on the study, click here.
About Elevate’s Center for the New Middle Class
Elevate’s Center for the New Middle Class conducts research, engages in
dialogue, and builds cooperation to generate understanding of the
behaviors, attitudes, and challenges of America’s growing “New Middle
Class.” For more information, visit: http://www.elevate.com/NewMiddleClass
About Elevate
Elevate has originated more than $3 billion in nonprime credit to 1.4
million consumers to date. Its innovative online credit solutions
provide immediate relief to customers today and help them build a
brighter financial future. The company is committed to rewarding
borrowers’ good financial behavior with features like interest rates
that can go down over time, free financial training and free credit
monitoring. Elevate’s suite of groundbreaking credit products includes
RISE, Sunny and Elastic. The company is privately held and is backed by
respected Silicon Valley venture capital firms including Sequoia Capital
and Technology Crossover Ventures. For more information, visit: http://www.elevate.com/.
Contacts
Media Inquiries:
Vested
Ishviene Arora, 917 765 8720
elevate@fullyvested.com
