Category Archives: Debt

Factors that Contribute to Younger People Having Lower Credit Scores

Factors that Contribute to Younger People Having Lower Credit Scores

Unfortunately, there’s a negative trend occurring around financial health with each passing generation.

A study done by Experian in 2016 found that Gen Xers (those born in the early 60’s to late 70’s) hovered around a fair 650 credit score rating. Millennial’s, or generation Y (80’s and 90’s), had an average score of 634 (poor). And the up-and-coming Gen Zers (mid 90’s early 2000’s) were also averaging a dismal 631 credit score.

In the study, baby boomers and the silent generation had Vantage Scores of 700 and 730 respectively. So it seems the younger you are, the worse your score is. Why is that?

Well, there are various actions younger people do to either knowingly or unknowingly hurt their credit history, some beyond their control. Here’s a brief listing of issues that have contributed to poor credit scores to younger generations.

Shorter Credit History:

First off, stating the obvious, your length of time using credit plays a substantial role on how well you score. So it’s quite understandable that new cardholders have less history. Therefore, your credit score will reflect that fact.
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Pros and Cons of Various Debt Relief and Reduction Methods

Pros and Cons of Various Debt Relief and Reduction Methods

Debt is inevitable in business as funding is required from time to time. Though it is common for companies to acquire some debts, problems arise when it becomes unmanageable. If handled responsibly, the debt may function as an impetus towards expansion and growth of the business by serving as a crucial economic engine. However, debt… Continue Reading

Why Small Business Are Advised To Use Direct Debit Services

Why Small Business Are Advised To Use Direct Debit Services

For a business that is just getting started, juggling multiple tasks and responsibilities, such as ensuring a smooth transfer of information and a great service for the clients, can sometimes be too much to handle. Multitasking gets harder when the company steps into the business world without knowing what’s best practice. Not every tactic that… Continue Reading