Credit Scores Let Millennials Down
As a new online Bankrate survey of almost 2,5 thousand respondents shows, 84% of Americans face financial product denials. The bigger part of millennials (22-36 years old), namely 58%, was rejected for a credit card or another credit product at least once. The reason is their bad credit score.
This denial rate is the highest compared to other generations. For example, generation X (37-52 years old) gets rejected because of their credit score in 53% of cases, while baby boomers (53-71 years old) hear “No” even twice as rarely (27% of cases).
According to the survey, applicants more often get denials due to their not high enough credit score when applying for credit cards. The number of rejections is 28% on average. Car loans take second place with 13% of denials.
However, millennials cross this line reaching 36% of denials for credit card applications and 18% for car loans. Housing is another financing sphere that millennials often get turned down for. 13% experienced denials for rent and 13% more – for a mortgage.
Of course, millennials’ low scores can be attributed to their age. After all, they did not have as much time to build a credit history. But one more point is that millennials more often than older generations stay unaware of their credit score. Only 43% of millennials tend to monitor it. Gen Xers and baby boomers turn out to be more versed in this question with 48% and 58% aware representatives respectively.
The connection is obvious. Tracking and improving your credit score can keep you protected from getting denied. That’s why it is essential to check your credit reports every now and then and apply for credit cards, personal loans or consider other credit offers taking into consideration scores. If you are still in doubt about which credit card to choose, use our Card Match Tool and get the whole range of suitable for your score offers just in 1 minute!
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