Millennials have been misinformed when it comes to their credit score

Millennials: What Do They Know About Credit Score?

Better Credit asks: What do Millennials Know About Credit Score?

It’s our goal to educate you on the best ways to manage and improve your credit scores. Whether you’re just getting started as a millennial or in your golden years, we want you to have the best credit possible.


The LendEDU conducted a survey of 500 young folks between the ages of 17 and 37. Here’s what they report:

  • 80% of them have checked their credit score at least once
  • 47.47% checked within the past 30 days
  • 20% have never checked their scores
  • Nearly 75% knew the definition of “credit score”
  • Have an average score of 634


With an average credit score in the low 600s what could be the reason? There are many, however we find that they are still establishing their credit. They are starting from zero essentially and are working their way towards the 700s. As they commit themselves to managing their finances responsibly, their numbers will improve.

Listening to Parents

In the early 2000’s, many parents with young kids lost a lot of money in the stock market or had to deal with a home foreclosure. As the kids became eligible for credit, the same fears or challenges their parents faced are at the forefront of their minds. If they consider credit cards similar to debt, this may alter the way they use and acquire credit.


Millennial myth  #1: More credit to build a better credit score

Nearly 50% of the millennials who took the survey said that it’s possible to improve your credit score by applying for more credit cards. Which is completely false. This is a long standing myth that plagues most adults. We believe this misinformation is spreading like a game of “telephone” from generation to generation.  

The more accurate stance to have is if you want to have more than one credit card, (or even just one) the amount of utilization (what you can spend) should be less than 30% of the total credit limit.


Millennial myth #2: Reach the limit then pay off cards will increase your score

Nearly 36% of millennials believe that a good way to boost your credit score is by using the maximum allowed for the card and then paying it off right away. Not only does this method damage your credit report it will keep your overall interest rates high in the process. This brings us back to the less than 30% utilization rule, which is more like a standard than it is a suggestion.


Millennial myth #3: Keep debt revolving for a good credit score

This myth goes back to getting a complete understanding of what a credit score is and how the major credit bureaus calculate said score. If 28% of millennials believe this myth, you’ll still need to pay the balance off each month and use under 30% of the credit available.


Review: How to calculate credit scores

Now is a great time to review the basics. A credit score is based on a calculation of the following:

  • Payment history: 35%
  • Current credit utilization: 30%
  • Credit history length: 15%
  • New credit inquiries: 10%
  • Credit mix: 10%


The main point is this: If you are going to use credit cards, keep the balances low and pay the balance off each month.


Credit scores range from 300 to 850.

750 – 850 (excellent)

700–749 (good),

650–699 (fair),

600–649 (poor),

600- below (bad)


The higher your credit score, the lower your interest rates will be when you’re ready for a car loan or for a mortgage. Therefore, check your credit report regularly and maintain excellent financial practices. Check your score here:

If you need to boost your credit scores, contact us today and speak with a Better Credit expert.