STAMFORD, Conn.–A new study indicates that Millennials are having a difficult time qualifying for a credit card.
According to a VantageScore Solutions survey of more than 1,000 consumers, a third of millennials said they were unable to obtain some kind of credit, largely credit cards, versus a quarter of the national sample.
“That adds up to 27.7 million Americans born between 1982 and 2000 who, as a result, may have a harder time getting a mortgage or car loan down the road,” the company said.
“Lenders and policymakers need to take notice that massive populations of Millennials fail to meet the minimum criteria associated with conventional credit scoring models, whereas many would be scoreable when updated models,” said Barrett Burns, president and CEO at VantageScore Solutions. “These consumers are reachable, scoreable and can be made eligible for automated underwriting systems in a safe and sound manner. They are seeking credit products and credit cards in particular. Many are very attractive potential borrowers, and lenders using outdated credit scoring models are missing opportunities to win their business and their loyalty.”
The VantageScore survey oversampled the Millennial population. Among the findings:
- Forty-eight percent of Millennials said the reason they could not obtain credit is because of a lack of credit history as a young adult.
- Among those who at one point were unable to obtain a credit score, the inability to get a credit card was the most common impact.
- Forty-two percent of Millennials said that limited credit history caused them the inability to obtain the credit they need.