Parents are the most likely source of credit
score knowledge, according to Discover’s annual Credit Health
survey
While most people may look to social media influencers for
advice on the latest fashion, DIY projects or dance moves, when it
comes to learning the importance of building good credit habits,
it’s actually their parents who carry the most influence.
Discover’s annual Credit Health survey revealed people are most
likely to learn about the importance of building good credit habits
from their parents, 38%, showing the influence parents can have
over their children’s financial habits.
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According to Discover's annual Credit
Health survey, Parents are the most likely source of credit score
knowledge (Photo: Business Wire)
Parental influence is more prevalent for Gen Z, who cited both
their parents (52%) and high school education, 44%, as stepping-up
to teach them about the importance of good credit health early on.
In fact, Gen Zers are getting an education about credit scores
younger than generations that came before them. Nearly seven in 10,
69%, say they learned about their scores between ages 15 – 19,
double that of other generations. Meanwhile, other generations
report that they learned about credit scores in their 20s.
Learned about the importance of
maintaining good credit health…
Gen Z
Millennials
Gen X
Boomers
Between 15-19
69%
30%
17%
9%
In their 20s
30%
49%
44%
35%
From their parents
52%
43%
40%
23%
In high school
44%
28%
17%
9%
“Credit health may not be something people think about until
they’re ready to hit life’s next major milestone – but the reality
is that building a credit score is a long-term practice, rather
than a single change,” said Stefanie O’Connell Rodriguez, a
nationally-recognized personal finance author and speaker.
“Receiving monthly credit checks through Discover’s Credit
Scorecard* is an easy way to put that practice into motion and see
exactly what factors are most impacting your credit score – so you
can tweak your strategy over time to be sure you’re in a good
credit position for life’s next big moment.”
Credit Scores and the Impact on Daily Lives
Discover’s survey also asked consumers what they wish they knew
about their credit score when they were first starting out on their
financial journeys. Thinking back, 21% said they wish they’d known
the impact credit scores have on the interest rates they’re able to
get on loans.
Slightly more than half of millennials, 55%, and Gen Xers, 52%,
said their credit score has held them back from making a major
purchase or life decision. Millennials report they have been kept
from purchasing a home, 23%, while Gen Xers have been denied
personal loans, 26%. Four in 10 of Gen Z report their credit score
has already held them back, as well, with 25% saying they haven’t
been able to the house/condo they wanted.
The Pandemic’s Impact on Credit Health
According to Discover’s survey, people’s satisfaction with their
credit scores slipped amid the pandemic, reaffirming the need to
think about credit health early and often. This year, just over
half, 55%, of people say they’re satisfied with their current
credit score, a decrease from 63% in 2020.
Discover’s Credit Health survey shows that 66% of people are
actively trying to improve their credit score, a 12-percentage
point jump from 2020. To help achieve this goal, 34% say they are
checking their credit score more often than last year, almost
double those who said the same in 2020, 18%.
Factors contributing to why people are
checking their scores…
Gen Z
Millennials
Gen X
Boomers
Wanting to maintain/stay on top of credit
scores
32%
37%
36%
36%
Concern over identity theft
29%
34%
45%
43%
Wanting to improve their score
48%
46%
42%
17%
Intent to make a large purchase soon
29%
29%
17%
6%
Wanting to apply for a new credit card
24%
20%
14%
4%
“Americans are continuing to rebound from difficulties presented
by the past year, and it’s encouraging to see people working toward
better scores despite setbacks. At Discover, we understand everyone
may not yet have perfect credit, and that’s why we’ve designed
products and tools to help them on their journeys to brighter
financial futures,” said Shannon Kors, Vice President of Marketing
and Product Strategy at Discover. “Products like the Discover it®
Secured credit card can help build credit with responsible use.”**
The Credit Scorecard can help customers better understand the
factors that impact their credit score.”
For more information about Discover’s offerings, go to
discover.com.
About the Survey
A national survey of 2,000 U.S. residents ages 18 and up was
commissioned by Discover and conducted by Dynata (formerly Research
Now/SSI), an independent survey research firm, between September 14
and September 18. The maximum margin of sampling error was +/-2
percentage points with a 95 percent and 90 percent levels of
confidence. Generations are defined as: Generation Z, born after
1997; millennials, born between 1981 and 1996; Generation X, born
between 1965 and 1980; and Baby Boomers+, born before 1964.
About Discover
Discover Financial Services (NYSE: DFS) is a digital 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
loans, checking and savings accounts and certificates of deposit
through its banking business. It operates the Discover Global
Network comprised of 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 around the world. For more
information, visit www.discover.com/company.
*FICO® Credit Score Terms: Your FICO® Credit Score, key factors
and other credit information are based on data from TransUnion® and
may be different from other credit scores and other credit
information provided by different bureaus. This information is
intended for and only provided to Primary account holders who have
an available score. See Discover.com/FICO about the availability of
your score. Your score, key factors and other credit information
are available on Discover.com. Customers will see up to a year of
recent scores online. Discover and other lenders may use different
inputs, such as FICO® Credit Scores, other credit scores and more
information in credit decisions. This benefit may change or end in
the future. FICO is a registered trademark of Fair Isaac
Corporation in the United States and other countries.
**Discover reports your credit history to the three major credit
bureaus so it can help build your credit if used responsible. Late
payments, delinquencies or other derogatory activity with your
credit card accounts and loans may adversely impact your ability to
build credit.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211027005306/en/
Derek Cuculich 224-405-0665 derekcuculich@discover.com
@Discover_News
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