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06.19.2020 / Lifestyles « Back to all articles
Do Millennials Care More About Their Credit Score than Previous Generations?
Millennials and Their Credit Scores
Millennials (those born between 1982 and 1999) are now in their twenties and thirties and making significant life decisions and purchases. At the age where cars, first houses and more are bought, Millennials are discovering the trials and tribulations of the credit score.
Far from the stereotype of the clueless, irresponsible teen, however, studies are showing that Millennials are far more aware and concerned about their credit score than older generations. Ninety-three percent of those aged 18-34 are aware of their credit status, and seventy-eight percent of them say it directly affects their lives. These numbers are significantly lower than those of Generation X and the Baby Boomers.
The Debt-Driven Lives of Millennials
Part of the reason no doubt has to do with the current student-loan situation. Many Millennials are currently paying back student loans that often run into the tens of thousands of dollars. Beginning their adult lives with such a big financial burden makes credit a constant companion. Large debt loads, particularly those in deferment, are poison to the credit score. Eighty-two percent of Millennials expressed a desire to improve their credit score.
As the world has moved more and more into a credit-based society, Millennials are finding themselves at a disadvantage. While they may be able to afford the things they need, they are finding the things that they would like to be out of reach – something that is sometimes difficult for college graduates to accept.
More Anxiety, Less Improvement
As Millennials move out of their young adulthood into their middle years, they are grappling with the stress of handling poor credit scores. Some of this may have to do with the ease of access to a credit score, with most financial companies now offering free credit checkups. But despite their desires to improve, Millennials continue to have poorer scores than the older generations – maybe another reason why the younger set has credit on their mind more often.
Possibilities for the Future
Going forward, it is possible that the Millennial generation may end up with one of the best credit score averages in recent memory. Because so many of them are dealing with it now, when they are young, it gives them a lifetime to improve it and to learn how. This could translate into better credit education for the upcoming generations, as well.
In the meantime, however, Millennials feel stuck and unable to move up in their lives because of their credit scores. Could it be possible that this group could find a way to wriggle out from under the need for borrowed cash?
Credit Talk
06.19.2020 / Lifestyles « Back to all articles
Do Millennials Care More About Their Credit Score than Previous Generations?
Millennials and Their Credit Scores
Millennials (those born between 1982 and 1999) are now in their twenties and thirties and making significant life decisions and purchases. At the age where cars, first houses and more are bought, Millennials are discovering the trials and tribulations of the credit score.
Far from the stereotype of the clueless, irresponsible teen, however, studies are showing that Millennials are far more aware and concerned about their credit score than older generations. Ninety-three percent of those aged 18-34 are aware of their credit status, and seventy-eight percent of them say it directly affects their lives. These numbers are significantly lower than those of Generation X and the Baby Boomers.
The Debt-Driven Lives of Millennials
Part of the reason no doubt has to do with the current student-loan situation. Many Millennials are currently paying back student loans that often run into the tens of thousands of dollars. Beginning their adult lives with such a big financial burden makes credit a constant companion. Large debt loads, particularly those in deferment, are poison to the credit score. Eighty-two percent of Millennials expressed a desire to improve their credit score.
As the world has moved more and more into a credit-based society, Millennials are finding themselves at a disadvantage. While they may be able to afford the things they need, they are finding the things that they would like to be out of reach – something that is sometimes difficult for college graduates to accept.
More Anxiety, Less Improvement
As Millennials move out of their young adulthood into their middle years, they are grappling with the stress of handling poor credit scores. Some of this may have to do with the ease of access to a credit score, with most financial companies now offering free credit checkups. But despite their desires to improve, Millennials continue to have poorer scores than the older generations – maybe another reason why the younger set has credit on their mind more often.
Possibilities for the Future
Going forward, it is possible that the Millennial generation may end up with one of the best credit score averages in recent memory. Because so many of them are dealing with it now, when they are young, it gives them a lifetime to improve it and to learn how. This could translate into better credit education for the upcoming generations, as well.
In the meantime, however, Millennials feel stuck and unable to move up in their lives because of their credit scores. Could it be possible that this group could find a way to wriggle out from under the need for borrowed cash?
