Gen-X renters have significantly weaker credit profiles than homeowners
Generation X is in its prime earning years, but the financial profiles of those renting are distinctly different from those who own a house, according to LendingTree.
Gen-X renters have significantly weaker credit profiles than homeowners; the median 672 credit score for a Gen-X homeowners is considerably greater than the 586 for renters in the cohort. And homeowners account for lower delinquency rates in addition to the higher credit scores.
All this comes despite renters carrying less debt, suggesting Gen-X homeowners are better at managing their obligations, according to a LendingTree analysis. The median of nine financial accounts held by homeowners nearly doubles the four kept by renters.
Renters in this generation have 10 negative marks on their credit report compared to only four for homeowners. Around 87% of Gen-X renters have at least one late payment, compared to a lesser 55% for homeowners in the cohort.
About 91% of Gen-Xers who own a home have a credit balance, compared to 67% for non-homeowners. The average credit balance for renters is $2,950, compared to $8,480 for property owners.
In terms of auto financing, about 71% of homeowners have a car loan, with the median amount owed being $21,120. Comparatively, 53% of renters have an auto loan, with the median amount owed totaling $16,737.
About 40% of Gen-Xers who own a home have personal loans, for which they owe a median amount of $11,482. A lesser 32% of those who rent have personal loans, and owe a median of $4,774.
Renters seek out new opportunities more frequently, with 2.3 average inquiries over the past six months versus 1.6 for homeowners.