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By Michael McKinstry, CardTrak.com

Americans are working their way up the learning curve on credit scoring. A new study has found that the proportion of consumers who understand that making payments on time influences credit scores rose from 87% in 2004 to 93% in 2005. The Opinion Research study for the Consumer Federation of American and Providian found that the proportion who know that maxing out a credit card influences scores increased from 66% to 77%. The report also found that 31% of those surveyed said they had obtained their credit scores within the past year. In 2004, only 24% said they had obtained their scores in the past year. Over the past year there was a significant change in where consumers obtained their scores. From 2004 to 2005, the percentage getting their scores from credit bureaus increased from 28% to 36%. In contrast, those obtaining their scores from mortgage lenders or brokers fell from 35% to 28%. However, more than three-quarters of consumers (76%) mistakenly believe that they have the right to obtain their credit score for free once a year.

The research found that only 27% understand that scores measure credit risk, not credit knowledge, amount, or attitude. And less than half understand that individuals have more than one score -- one from each of three major credit bureaus and other scores as well. Only 54% understand that maxing out a credit card will lower one's credit scores. And only 20% know that just making minimum payments on credit cards will lower one's scores. Surprisingly, less than one-quarter (23%) know the identity of the three major credit bureaus.

To help consumers better understand credit scores, CFA and Providian are making available a Web-based quiz, "Do You Know the Score on Credit Scores?," at http://www.consumerfed.org/score that tests the credit-score knowledge of consumers, providing key facts whenever incorrect answers are entered.