Survey reveals under-30s are unwittingly ruining their credit rating

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15th August 2016 17:19 - Financial Services

Survey reveals under-30s are unwittingly ruining their credit rating: According to new finance market research by online credit score provider, My Credit Monitor, a whole generation of youngsters are destroying their credit scores without even realising.Survey reveals under-30s are unwittingly ruining their credit rating

The credit score provider surveyed 1,000 people under the age of 30 – who have been labelled as “the debt set” – and revealed that a massive 75 per cent did not know what their credit score was before they had their first credit card. A further 20 per cent (approximately) were given no choice but to move back in with their parents to help clear their debts after abusing a credit card.

My Credit Monitor revealed that the biggest mistake “the debt set” are making is maxing out their credit card, or spreading the cost of a purchase out over multiple credit cards.

Of the under-30s, approximately 18 per cent said that they are still paying back money that they spent in their teenage years and 20s. As a result, the researchers said that it was not a shock that 84 per cent of the survey respondent wanted to see more personal finance lessons being taught in schools.

The survey findings followed an alternative study by the Resolution Foundation who revealed that young people today have had the bad luck of entering the jobs market in a difficult climate, which means that their lifetime earnings could potentially be permanently affected.

The Resolution Foundation’s findings also suggested that millennials are more likely to be the first generation to use £8,000 less per year than their elders.

Further to this, the survey uncovered that millennials’ chances of owning their own home has decreased, with baby boomers having been 50 per cent more likely to own their own home by the age of 30, in comparison with millennials today. As a result, the culture of renting is anticipated to result in millennials spending £44,000 more on rent by the time they reach 30, in contrast with the baby boomers.

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