Forty-Six Percent of Millennials Feel Held Back by Credit Score
New survey by fintech firm OppLoans shows the impact of bad credit on young people.
CHICAGO—July 11, 2018—Are millennials too young to have bad credit? Definitely not. And it’s taking a toll.
According to data from a new survey by the fintech firm OppLoans, a shocking 46 percent of millennials already feel held back by their credit score. Bad credit was found to have a far-reaching impact on areas of life including purchasing a car, securing housing and applying for credit cards.
The survey of 2,000 Americans was conducted between June 7 and June 19 by the polling company OnePoll at the request of OppLoans. Of 1,000 millennial respondents, a significant percentage reported difficulties that sprung from poor credit scores.
- Twenty-seven percent of millennials said a bad credit score had hurt their chances of buying a car.
- Twenty-six percent said poor credit had hurt their chances of getting a loan.
- Twenty-three percent said poor credit had hurt their chances of getting a credit card.
- Twenty-five percent said poor credit had hurt their chances of getting an apartment or a house.
- Fourteen percent said they lived with roommates because they couldn’t rent on their own due to bad credit.
“A low credit score can cause serious problems long before the common milestone of applying for a home mortgage,” said OppLoans CEO Jared Kaplan. “For a significant portion of millennials, the things that most people do in their 20s – rent an apartment, buy a car, get a credit card – are tough because of bad credit.”
Along with the survey, OppLoans released a list of seven money “hacks” to help young people keep their credit healthy. The tips are designed to provide millennials with simple, concrete ways to avoid credit damage and build a strong credit history.
“There are many easy ways that young people can avoid hurting their credit,” said Kaplan. “For instance, our survey found that 36 percent of millennials who missed a credit card payment simply forgot about it. Almost all credit card companies allow customers to set up automatic payment plans, and these can be programmed to cover only the minimum amount due if someone’s on a tight budget. This is an everyday hack that can help millennials avoid credit damage and late fees.”
A detailed list of the tips, as well as survey results and shareable infographics, are available on the OppLoans site.
Millennial Money Hacks
- Use a free budgeting app. Budgeting apps are a thing, and they’re perfect for tech-savvy millennials. They keep you organized and honest. Take advantage of them.
- Check your credit report. You can get a free credit report once a year upon request. Visit AnnualCreditReport.com for yours. Knowledge is power.
- Go cash-only. Credit cards are easy to overuse, but with cash, you can’t spend what you don’t have. Make a budget and withdraw fun money once a week. Once it’s gone, you’re done until next time.
- Set up automatic payments. Use these to avoid late fees and credit damage. But be careful: if you don’t have funds to cover the bill, you’ll overdraw your account. If you’re on a tight budget, consider setting your plan to pay only the minimum amount due, and deal with the rest manually.
- Call if you’re behind. Creditors lose money when they sell your debt to a collection agency. If you’re behind, they might be willing to negotiate with you. It doesn’t always work, but it’s worth a try.
- Close old utility accounts. Millennials move around a lot. In the shuffle, it’s easy to forget to close an account. Don’t let a silly slip-up damage your credit.
- Open a savings account. Millennials know it’s often too easy to withdraw money from a checking account. Set up a separate savings account and get in the habit of making regular deposits. Bonus: You’ll earn interest, and that’s a wonderful thing.
OppLoans is one of the highest-rated online lenders and service providers in the industry. With faster funding, significantly lower rates, total transparency, and unmatched customer service, OppLoans provides non-prime borrowers a safe and reliable alternative to payday lending.
For more information regarding OppLoans, please visit the OppLoans website at OppLoans.com or call John O’Reilly at (312) 212-8079 extension 818.