Elevate Center for the New Middle Class, which conducts research that focuses on the American “new” middle class, released its latest report on Monday, revealing that 81% of nonprime Americans, which are those with credit scores lower than 700, spend only what they earn, or less on everyday expenses.
In this study, the organization notably explored how the nonprime Americans are remaining financially savvy, especially in comparison to their prime counterparts (i.e. those who have credit scores 700 and higher). The study’s findings found the following:
- 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
Sharing more details about the research, Jonathan Walker, executive director of the Elevate Center for the New Middle Class, explained:
“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. 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.”
Walker then added:
“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.”
See the full report below.
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