Which generation has the best credit in the US?

by Steve Randall10 Oct 2018

A new analysis has looked at the credit scores of the generations in the US and found that on average, the older someone gets, the better their credit.

The data shows that average scores of the Silent Generation beat those of millennials by 100 points.

Using data from the 9 million users of the LendingTree platform, the firm found that the oldest cohort were the only group to have ‘very good’ credit scores and the younger Baby Boomers were the only group with ‘good’ scores’.

For Generation X and Millennials, scores were on average only ‘fair’.

Kali McFadden, senior research analyst at LendingTree, says that older people tend to use credit less and are often more settled financially with lower monthly costs.

The older someone is, the less likely they are to have high mortgage payments or student loan debts; and may also have less chance of urgent financial costs that can result in delinquencies.

Credit Score by Generation

Generation

Average Credit
Score

Score
Category

Millennial

634

Fair

Gen X

653

Fair

Baby Boomer

696

Good

Silent

734

Very Good

Source: Analysis of an anonymized sample (July 2018) from among My LendingTree's
9 million users.

 

Younger generations are more likely to have higher living costs and debt burdens. And the youngest will not have built up a credit history.

"Even someone who has handled their finances impeccably will have lower credit scores until they've demonstrated that across a mix of debt products over an extended period of time," McFadden said.

Total Interest Paid Over the Lifetime of Loans

Debt Type

Average Loan
Amount

Very Good Credit
Score

Fair Credit
Score

Total Cost
Difference

Credit Cards

$5,265

$3,794

$9,423

$5,629

Personal

$11,258

$2,217

$6,007

$3,790

Auto

$21,778

$2,267

$7,050

$4,783

Student

$37,525

$7,059

$9,035

$1,976

Mortgage

$234,437

$197,161

$226,266

$29,106

Total

$310,263

$212,498

$257,781

$45,283

Sources: Analysis of anonymized LendingTree and My LendingTree consumer loan and debt data.

 

 

  


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