Credit Card News

Advertising Disclosure

Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Credit Scores are an Issue for Millennials

Credit Scores are an Issue for Millennials

By
Add to Favorites:
Credit Scores are an Issue for Millennials
November
2

Once denied credit, six out of ten millennials give up for at least a year, according to a new study by Money 20/20—ID Analytics. Millennials are typically denied credit even if they make enough to make payments or repay debt, due to either having a low credit score or no credit score at all.

While traditional credit scores have worked for baby boomers and other generations, the data suggests they are not working as well for millennials who often have reduced visibility when it comes to tracking their credit based responsibilities, like paying for their cell phone service. This translates into not having a credit history or if they do have one it falls short, creating a situation where they get denied credit.

“Without a complete picture of millennial’s credit, many financial services companies are turning away good consumers, and the bad news for financial institutions is that only ten percent of millennials will re-apply to the same lender once they have been declined”, – said Patrick Reemts, vice president of credit risk solutions at ID Analytics.

Millennials are trying

While millennials may be having a hard time getting a credit card of their own it is not because they aren’t trying – they actually are. And they are applying for them at higher rates than their older counterparts-generation X or baby boomers (35 percent vs. 29 percent vs. 28 percent).

The study also discovered that millennials account for more of the total credit card applications filled out (35%) verses marketplace loans (28%). What this data suggests is that millennials are more interested in acquiring conventional streams of credit.

Low credit activation rates

There is no doubt that the younger set is applying for credit, but when you look at the data they have lower activation rates than baby boomers. Millennials are now the biggest generation of U.S. consumers, but when it comes to credit scores less than half of millennials have one, making it hard to get approved for credit cards and other streams of credit.

With a third not being able to generate a credit score, of those who can be scored two thirds who are under 30 years old, have either credit scores that are subprime.

Add to Favorites:

Related News:

Checking Credit Scores Equals Improved Ratings
Checking Credit Scores Equals Improved Ratings

By Dar Dowling, Posted: August 10, 2016

If you're looking to get your credit score in shape or keep it there, actually checking it on a regular basis is your best bet, according to a new study by Discover. Continue reading
FICO Upping Credit Around the World
FICO Upping Credit Around the World

By Dar Dowling, Posted: October 31, 2016

FICO has launched their Financial Inclusion Initiative, giving people who have a very limited credit history or don't have a traditional credit history a chance to access credit. Continue reading
Chase Launches Credit Score Website
Chase Launches Credit Score Website

By Dar Dowling, Posted: January 09, 2017

If you are looking to get your credit score and learn more about what it means for you in terms of your financial future, you may want to check out the new website being launched by Chase Card Services. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Bonus Miles - For example, if you earn 20,000 Miles, you get 40,000 Miles. We'll match all the Miles you've earned at the end of your first year.
For Excellent, Good Credit
You could turn $200 into $400 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee
For Bad Credit