Millennials’ Awareness of Their Credit Standing Increased Significantly in Last Two Years as They Prepare for Life’s Larg...
29 October 2019 - 8:00PM
Business Wire
Discover’s annual Credit Health survey finds
nearly three quarters of consumers check their credit score at
least once a month
More millennials are aware of their credit standing in 2019
compared to 2017, according to Discover’s annual Credit Health
survey. Since 2017, millennials’ awareness of their credit standing
has jumped 38 points from just 55 percent to 93 percent in 2019.
Also in this year’s survey, millennials’ awareness outpaces other
generations, as 79 percent of Generation X and 73 percent of baby
boomers said they are aware of their credit standing.
Millennials are the most likely to believe their credit standing
has an impact on their day-to-day life (78 percent), compared to
just 52 percent of Gen X and 35 percent of baby boomers.
Additionally, millennials led the way in believing that checking
their credit score helps them make smarter financial decisions (65
percent), compared to only 39 percent of baby boomers.
“Credit health is one of the most important aspects of a
person’s financial wellbeing, especially for those who are reaching
life’s milestones and may be getting married, buying a home or
making other major financial decisions,” said Stefanie O’Connell, a
nationally-recognized personal finance author and speaker.
“Discover’s Credit Health survey shows that more people are taking
the proactive step of checking their credit score. People want to
assess their long-term goals, properly manage their money and build
a better life around their priorities.”
Credit Scores Are Top of Mind for More Consumers
The survey revealed the majority of consumers are thinking about
their credit score and 73 percent of consumers think about their
credit score at least once a month.
When it comes to actually checking their credit score, 82
percent of respondents said they checked at least once in the last
year, up 10 points from 72 percent in 2017. Additionally, more than
half (56 percent) of respondents said they are actively trying to
improve their credit.
“We know there is always more work to be done to educate
consumers about their credit health,” said Gaurav Sharma, senior
vice president of marketing at Discover. “Our Credit Scorecard tool
was designed to ensure that all consumers – not just Discover
cardmembers – have free and easy access to their FICO®1 Credit
Score and factors that impact it. An increase in both overall
awareness and in the number of consumers checking their credit
score is exactly what we hoped for when creating the tool.”
There Continues to be Confusion around Checking Credit Scores
and Factors that Affect Credit Standing
While awareness is increasing, there is still confusion when it
comes to whether checking a credit score has an impact on the score
itself. Almost a quarter of respondents (23 percent) said they
think checking their credit score negatively affects it.
Additionally, there is confusion about the factors that affect
credit standing, as less than half of respondents (47 percent)
correctly said credit payment history has a direct impact on credit
standing, and just 34 percent of respondents said credit
utilization has an impact on credit standing. Eighteen percent
falsely said income has an impact on credit standing, and 15
percent incorrectly said employment history affects it.
Consumers have conflicting opinions about the impact they can
have on their credit standing, as the majority (63 percent) believe
it is within their control, yet 55 percent do not think a good
credit standing is easy to get.
For more information about Discover’s free Credit Scorecard, go
to www.creditscorecard.com.
About the Survey
All figures, unless otherwise stated, are from a Dynata
(formerly Research Now/SSI) survey conducted on behalf of Discover
Financial Services. The survey was conducted online; fielded from
May 6 – 10 with a total sample size of 2,150 US adults (ages 18+).
The margin of sampling error was ±2.1 percentage points with a 95
percent level of confidence. The following generational breaks were
used when examining the data: Millennials (18-34), Gen X (35-54),
and Baby Boomers (55+).
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and
payment services company with one of the most recognized brands in
U.S. financial services. Since its inception in 1986, the company
has become one of the largest card issuers in the United States.
The company issues the Discover card, America's cash rewards
pioneer, and offers private student loans, personal loans, home
equity loans, checking and savings accounts and certificates of
deposit through its direct banking business. It operates the
Discover Global Network comprised of Discover Network, with
millions of merchant and cash access locations; PULSE, one of the
nation's leading ATM/debit networks; and Diners Club International,
a global payments network with acceptance around the world. For
more information, visit www.discover.com/company.
1FICO is a registered trademark of the Fair Isaac Corporation in
the U.S. and other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20191029005200/en/
Derek Cuculich 224-405-0665 derekcuculich@discover.com
@Discover_News
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