TransUnion?s TrueCredit.com Taps Consumer Sentiment

With the holiday shopping season approaching, TransUnion?s TrueCredit.com commissioned Roper Public Affairs to assess consumer attitudes about upcoming holiday financing offers. When asked how likely they are to make a major purchase this holiday season using either a zero-percent financing or a no payments/no interest offer, fewer than two in ten (18%) say it is very or somewhat likely that they will. Additionally, 71% respond that if they were to take advantage of such an offer, they would plan to pay off the total due before incurring any interest charges.

Appeal May Increase as Holidays Approach

Consumers with their sights set on the latest electronics, appliances and year-end auto deals this holiday season will once again be treated to numerous offers. ?As the holidays get closer, these promotional offers may become increasingly appealing to some shoppers,? said Lucy Duni, Director of Consumer Education for TransUnion?s TrueCredit.com. ?Whether you?re cash strapped or just looking to take advantage of a good deal, determining whether the offer is right for you includes clearly understanding the specific terms and how much money you?ll end up saving or paying in the long run.?

The survey also found correlations between age and income level and attitudes toward such offers:

• Ninety-five percent of those age 65 or older say they are unlikely to take advantage of such offers
• Twenty-five percent of those with household incomes of $50,000 or more say they are very or somewhat likely to take advantage of an offer, vs. 15 percent of those with household incomes less than $50,000
• Eighty-one percent of those with household incomes of $50,000 or more say they would pay off the whole purchase before interest is due, vs. 64 percent of those with household incomes less than $50,000

?Promotional offers often require opening a new store account,? added Duni. ?Consumers should keep this in mind and prioritize their purchase decisions accordingly because opening multiple accounts in a brief period of time can impact their credit score, which may make it more difficult to secure favorable credit terms in the future.?

Methodology

Roper Public Affairs conducted this study using Random Digit Dialing (RDD) methodology from September 22 through September 24, 2006. A total of 1,009 interviews were conducted among adults across America. Age, gender, income and geographic information were collected. The margin of error for the complete sample is +/- 3 percentage points. The margin of error for subgroups may be higher.