May 12, 2014

Millennials less knowledgeable about credit scores

May 13, 2014 – A survey report released Monday shows that millennials – people 18-34 years old – know less than other adult Americans about which businesses use credit scores and who collects the supporting data.

The report, released jointly by the Consumer Federation of America and VantageScore Solutions LLC, a NAFCU Services Preferred Partner, also shows millennials are more likely to erroneously think credit repair companies can always or usually be useful in correcting errors and improving scores.

The survey also showed millennials are much less likely than other adults to have ever obtained a free credit report. In the survey, 49 percent of millennials said they had obtain the free reports, while 74 percent of older Americans had.

In other survey results:

  • 18 percent of millennials and 32 percent of older consumers correctly indicated that all six of types of businesses noted (from credit card issuers to landlords to cell phone companies) might use credit scores.
  • 47 percent of millennials and more than 60 percent of those 45-64 years old know age is not used in calculating credit scores.
  • 65 percent of millennials and 75 percent of older adults know the three main credit bureaus collect information on which credit scores are based.
  • 50 percent of millennials and nearly 59 percent of those 45-64 years old know credit repair companies only occasionally or never are helpful in correcting credit report errors and improving scores.
  • Just 40 percent of millennials said they think they have good or excellent knowledge about credit scores, while 62 percent of those 35 years and older think they have this knowledge.

The survey involved calls to 1,004 consumers from April 17-19.