Millennials Associate Credit Standing with
Freedom, Self-Worth
Want to improve your credit behavior? Checking your credit score
regularly may be a good start. A recent consumer survey
commissioned by Discover found that a high percentage of those who
reported regularly checking their credit score during the prior
year said that checking their score helped improve their credit
behavior.
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Discover Survey: Consumers Who Regularly
Check Their Credit Score Say Doing So Improves Credit Behavior
(Graphic: Business Wire)
Survey results show that 73 percent of regular checkers – those
who checked their credit score seven or more times in a year – said
that checking their score had a positive impact on their credit
behavior, such as paying bills on time, paying down loans and
maintaining low balances on their credit cards. Whereas 44 percent
of those who checked their score once during the prior year felt
similarly.
In addition, many survey respondents who said they checked their
credit score during the prior year also reported improvements to
their score. According to the survey, 76 percent of those who
checked their score seven or more times during the previous 12
months said their score improved greatly or slightly over that same
time period. A similar number, 72 percent, of those who checked
their score four to six times throughout the year reported
improvements to their score. While just 38 percent of those who
checked their score once over 12 months said their score
improved.
“Checking your credit score is one of the simplest things that
anyone can do to get on the path to understanding their credit
health,” said Julie Loeger, executive vice president and chief
marketing officer at Discover. “But checking is just the first
step. One of the reasons we launched Discover Credit Scorecard is
to help people stay on top of their credit by gaining more
knowledge of key factors that go into their score.”
Everyone can check their FICO® Credit Score and personalized
credit profile for free, including those who are not Discover
customers, by going to Discover.com/CreditScorecard.
Many underestimate the broad impact of their credit
standing
The survey also shed light on consumers’ understanding of how
credit impacts their lives. The majority of those surveyed, 74
percent, said their credit standing was important to them. An even
greater number, 82 percent, said they were aware of their credit
standing, if not their specific credit score. Just over half, 54
percent, felt their credit standing had an impact on their
day-to-day life.
While most respondents, 81 percent, said their credit standing
had a large impact on their ability to purchase a home, fewer
thought it had as big of an impact on other important matters that
could be affected by one’s credit.
- Getting a job: 64 percent thought their
credit standing had little or no impact
- Getting a favorable insurance rate: 47
percent thought their credit standing had little or no impact
- Renting an apartment: 47 percent
thought their credit standing had little or no impact
- Getting a personal or student loan: 32
percent thought their credit standing had little or no impact
- Getting a credit card: 29 percent
thought their credit standing had little or no impact
- Buying or leasing a car: 25 percent
thought their credit standing had little or no impact
Credit is personal to millennials
Millennials, ages 18 to 34, who took part in the survey reported
having a more personal connection to their credit compared to other
generational groups. Nearly half of millennials, 46 percent, said
they associate their credit standing with their self-worth,
compared to 43 percent of generation X, ages 35 to 54, and 30
percent of baby boomers, ages 55 to 69. In addition, 64 percent of
millennials said they associate their credit standing with their
sense of freedom, compared to 56 percent of generation X and 40
percent of baby boomers.
Millennials also reported checking their credit score more
frequently than their generational counterparts. Among those
surveyed, 40 percent of millennials said they checked their score
at least four times within the past year, compared to 30 percent of
generation X and 25 percent of baby boomers who checked as
often.
The majority of millennials who checked their credit score
within the past year, 57 percent, said the biggest motivator to
check their score was to improve or maintain it, compared to 47
percent of generation X and 37 percent of baby boomers who were
similarly motivated.
“We believe these survey findings are in line with trends and
behaviors we’ve seen since 2013 when we became the first major
credit card issuer to offer FICO® Credit Scores for free to our
cardmembers on their monthly statements and online,” said Loeger.
“Familiarity with your credit score could have a meaningful impact
on your credit behavior. With Credit Scorecard, we’ve made it
possible for everyone to check their FICO® Score for free.”
For more information about Credit Scorecard, visit
Discover.com/CreditScorecard.
About the Survey
The national survey of 2,000 consumers ages 18 and over was
commissioned by Discover and conducted in March
2016 by Toluna, an independent survey research firm. The
maximum margin of sampling error was ±5 percentage points with a 95
percent level of confidence. The results were based on consumers’
self-reported estimated credit scores. The survey was not based on
FICO® Scores.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking
and payment services company with one of the most recognized brands
in U.S. financial services. Since its inception in 1986, the
company has become one of the largest card issuers in the
United States. The company issues the Discover card, America's cash
rewards pioneer, and offers private student loans, personal loans,
home equity loans, checking and savings accounts and certificates
of deposit through its direct banking business. It operates the
Discover Network, with millions of merchant and cash access
locations; PULSE, one of the nation's leading ATM/debit networks;
and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.
FICO® Credit Scores provided by Credit Scorecard are based
on data from Experian and may be different from other credit
scores. See Discover.com/CreditScorecard to learn more. FICO® is a
registered trademark of the Fair Isaac Corporation in the United
States and other countries.
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version on businesswire.com: http://www.businesswire.com/news/home/20160726005216/en/
Discover Financial ServicesJeremy
Borling224-405-4252jeremyborling@discover.com@Discover_News
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