Millennials addicted to checking their credit scores
Listen to this articleOlder Millennials are obsessed with checking their credit scores, according to Fox 5. Nine out of 10 Millennials aged between 30 and 38 years of age have checked their credit score one or more times in the past year, which is higher than any other age group. Meanwhile, Millennials in Los Angeles have some of the highest scores in the U.S. But, are they doing enough to make their credit scores the best that they can be?
How LA’s Millennials fair
Single females aged between 33 and 39 years of age in Los Angeles currently have an average FICO score of 676. Single males in the city have a similar average score of 674. Both of these scores put LA in the top 20 cities by FICO score for this age group. However, these scores are below the national average FICO score which currently sits at 704. Although, LA’s average score is an impressive 745.
Why are Millennials obsessed?
A score of between 650 and 700 is usually perceived as ‘fair’. But, Millennials know that this isn’t enough to secure them the American Dream, which includes owning their very own home. 46% of Millennials state that their credit score is preventing them from achieving what they want from life, according to MarketWatch. As a result, they know they need to take action to keep their credit score healthy, and this includes regularly checking it for errors. It’s best to resolve issues with a credit report as quickly as possible so that the score on it is accurate and to prevent issues arising when credit is applied for.
A misperception
Another reason why the country’s Millennials are religiously checking their credit scores is because they are misinformed. Almost 25% of Millennials are under the impression that they must have the perfect credit score to qualify for a mortgage. “Our Borrower Insights Survey recently found that many Millennials have a strong misperception about needing a perfect credit score to qualify for a home loan,” says Joe Tyrrell from Ellie Mae. In reality, mortgages can be obtained with a credit score as low as 500. Although, Fannie Mae’s guidelines recommend having a minimum FICO score of 620 before taking the first step onto the property ladder.
With credit scores playing a big role in life, it’s understandable why so many older Millennials are constantly checking them. But, it’s also important that they educate themselves on FICO scores as millions of Millennials hold incorrect information on them.
Cassandra Winter is a professional writer and editor. After a career in PR for an arts charity, she now focuses on writing about her favourite topics from public art to restoration and events. When not working she loves swimming, hiking and quiet nights in with her family.