Checking credit reports regularly can help consumers detect identity theft, which, according
to the Federal Trade Commission (FTC), has struck 27.3 million Americans in the past five years.
Its also an opportunity for consumers to understand their credit status, see how their financial
decisions impact their credit standing and assess their progress toward achieving financial goals.

"Knowing your credit history represents the first step toward understanding and managing your
financial well-being," says Loretta Abrams, vice president of community development and consumer
advocacy at HSBC - North America. "The second step is to develop a spending and savings
plan that works for you."

HSBC's survey underscores the importance of consumers knowing their credit status as the initial
step toward securing their financial future. The survey found that:

* More than 90 percent of consumers know their credit score impacts their ability to make major
purchases such as a home, but only one-third actually know their score;

* More than one-third of people who received their free credit reports found errors in them; and

* Of the consumers who received their free credit report, only 21 percent paid the extra fee
to get the credit score.

Recognizing how creditors view consumers financial standing also provides a reality check of how
well theyre managing their money. Sound management can be maintained or improved with a smart
plan for budgeting expenses. However, HSBCs survey found that the majority of consumers
are not budgeting or saving to meet their financial needs:

* Only 26 percent of consumers actually stick closely to their budget.

* More than 80 percent are concerned about the level of their savings.

* Should they face an unexpected life crisis, four in 10 consumers do not
have enough money in savings to cover more than one month of basic living expenses.