Millennials Worry Less About Credit Scores Than Boomers: Survey

Millennial borrowers display a more prodigal and unconventional attitude to borrowing than their elders, a loanDepot survey suggests.

They might care less about their credit scores, but are also more likely to take out personal loans to finance a wedding and turn to alternative forms of credit like online lending.

"While it'll still be important for this generation to learn to manage credit successfully, there is no denying that as millennials take the lead in driving the economy," said loanDepot CEO Anthony Hsieh in a Tuesday press release.

While 73% of baby boomers believe it is important to maintain a good credit score, only 59% of millennials would concur. This generation is also nearly twice as likely than its older peers to take out a personal loan. And 23% of millennials would consolidate their credit card debt in order to spend more, compared with only 12% of boomers.

Some similarities emerged between the two generations, too. Home improvement and debt consolidation came out as the top two spending choices from personal loan money, for instance. Both age groups were also unlikely to know about nonbank online lenders as 34% of baby boomers and only 28% of millennials knew about the availability of these credit options.

Overall, millennials stood out as novelty-happy borrowers. Twenty-nine percent said they would be willing to use a personal loan to pay for a wedding or vacation, compared to only 13% for boomers, while 80% of those familiar with nonbank online lenders moreover appreciate the convenience of shopping online for financial services. Finally, millennials were likelier (60%) to seek out credit management help than baby boomers (52%).

The survey was conducted by GfK Custom Research North America and based on interviews conducted online between Aug. 21 and Aug. 24, with a sample size of 1,097 and a margin of error on weighted data of 4.4%.

 

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