Millennials Are More Interested in Their Credit Scores Than Any Generation
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