PROVIDENCE – A new study shows one in every five millennials have never checked their credit scores.
A study released last week by LendEdu, an online marketplace for student loan financing, surveyed 500 millennials between the ages of 17 and 37 to test their knowledge of credit scores. LendEdu concluded that “Young American consumers have an intermediate understanding of that all-important three-digit number,” according to the study.
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For the most part, survey respondents had a relatively good handle on what a credit means, as 74.3 percent correctly answered, “the number which indicates your calculated credit risk.” But there were some areas of concern. Nearly 5 percent of respondents said they’d rather have a low credit score than a high credit score. Another 10.4 percent believed a credit score was a number assigned to individuals at birth, which gives them priority from a financial institution.
The online organization stressed the importance of understanding credit scores, saying millennials could afford to learn more about them and how they are calculated.
“Only through having a thorough understanding of how credit scores are calculated will consumers be able to successfully build up their scores,” according to the study. “Our poll found that many millennials lack the knowledge necessary to build a good credit score.”
