Millennials Lack Knowledge About Credit: Experian

Many millennials lack knowledge about credit, despite their own concerns with their financial futures, according to a study by Experian.

While 71% of the 1,000 millennials surveyed said they were confident about their credit knowledge, 32% didn't know their credit scores and 67% had questions about how the scores were created, Experian noted in a Nov. 3 press release.

The report also noted that millennials' perception of their credit scores and debt did not match with reality. The individuals surveyed estimated an average credit score of 654 versus an actual average score of 625. And their estimate of average debt was $26,610, nearly half the actual average of $52,210.

While millennials are typically lumped with student loan debt, credit card debt is the most common millennial debt at 38%, Experian found. Student loans follow at 36%, with home loans coming in at just 20%.

The report also took a look at the unique position in financial history that millennials take up.

"They've experienced a recession and the explosive advancement of personal technology," said Guy Abramo, president of Experian Consumer Services, in the release. "As a result, they've developed different views toward managing money, using credit and how they expect financial services to be delivered."

A 57% majority of millennials use financial mobile apps, and the same percentage showcases a willingness to turn to alternative companies or services for their financial needs. Additionally, 39% of millennials said they knew about nonbank lenders such as Prosper and LendingTree.

Nearly half of the millennials surveyed also noted they look for new financial services companies with better offers, and more than three-quarters of them said they would switch to a company with a better deal.