Millennials Are More Interested in Their Credit Scores Than Any Generation

Jul 31, 2018

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

Believe it or not, a recent study conducted by Research Now on behalf of Discover shows that young people are more in touch with their credit score than any other generation in the United States.

While more than half of the population of consumers in the US — 61%, to be exact — reported that they are actively trying to improve their credit score, that percentage is concentrated in the younger generations.

The highest concentration of those taking steps toward improving their credit score lies in the subset of Gen Z go-getters between the ages of 18 and 21, 87% of which are actively working to improve their credit score. Right behind them, 83% of millennials are also trying to get their scores closer to 830. Right behind them comes Gen X with 63% followed by only 34% of Baby Boomers.

It makes sense that younger generations are more concerned with their credit scores, as they tend to be more interested in renting or buying homes and having low insurance rates. “Building credit at a young age can be beneficial down the road when it comes time for some of life’s big moments, like buying a home or a car, or renting an apartment,” pointed out Jeff Bielski, vice president of marketing at Discover.

People are also becoming more aware of their credit in general. Last year, 73% of respondents said that they were aware of their credit standing. This year, it’s up to 85%. Credit awareness is more prominent in older generations than younger generations.

Baby Boomers are most aware of their credit standing at a whopping 91%, closely followed by Gen X at 86% and then millennials at 77%.

Is it possible that Baby Boomers are just so confident in their credit scores that they see no need to improve considering that they’re widely aware of their score? Maybe younger generations are more concerned with credit because they are just starting out?

Well, according to the study results, exceptional credit scores (670+) are common in Baby Boomers — over 50% lie in that category, which only 28% of Gen X’s and 11% of Millennials have exceptional credit score.

“At the other end of the spectrum,” the study explained, “about a quarter of both Millennials and Generation X—24% and 25%, respectively—said their score is fair or poor, compared to just 8% of Baby Boomers.”

Below are some other honorable mentions from the study. Check it out:

Credit awareness is rising

  • 82% checked their credit score at least once in the past year, up by 10 percentage points from last year
  • 12% checked their credit score 12 or more times in the past year, an increase of 4 points from a year ago

Millennials check their credit score more often than other generations

  • 70% of Millennials checked their score more than once in the past year, compared to 67% of Generation X and 61% of Baby Boomers
  • 76% of Millennials believe checking their score helps them make smarter financial decisions, compared to 62% of Generation X and 38% of Baby Boomers

Featured image by Shutterstock.

2018 TPG Award Winner: Mid-Tier Card of the Year
Chase Sapphire Preferred® Card

NEW INCREASED OFFER: 60,000 Points

TPG'S BONUS VALUATION*: $1,200

CARD HIGHLIGHTS: 2X points on all travel and dining, points transferrable to over a dozen travel partners

*Bonus value is an estimated value calculated by TPG and not the card issuer. View our latest valuations here.

Apply Now
More Things to Know
  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • No foreign transaction fees
Intro APR on Purchases
N/A
Regular APR
17.99% - 24.99% Variable
Annual Fee
$95
Balance Transfer Fee
Either $5 or 5% of the amount of each transfer, whichever is greater.
Recommended Credit
Excellent/Good

Editorial Disclaimer: Opinions expressed here are the author’s alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

Disclaimer: The responses below are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser’s responsibility to ensure all posts and/or questions are answered.