Half of Americans Have Bad Credit Blues

Bad credit text from wooden blocks on desk

More than half (53%) of all Americans have been rejected for a credit card, loan, or car due to poor credit, according to a survey conducted by YouGov plc on behalf of Dallas-based ScoreSense®.

The study also reveals two leading causes of this phenomenon:

  • Credit Ignorance: Nearly one quarter (23%) of Millennials don’t know their credit score, along with 54% of Generation Z members, 18% of Generation Xers, and 20% of Baby Boomers. 
  • Too Many Credit Cards, or None At All: More than one-third (38%) of Americans have three or more credit cards, and 13% of Baby Boomers have six or more. On the other hand, approximately three in ten (28)% of Americans between ages 18 and 54 don’t have any credit cards. From a credit perspective, maintaining more than three credit cards can potentially lower your standing—but holding no credit cards whatsoever can also reflect poorly.  

ScoreSense (https://www.scoresense.com), developed by One Technologies, LLC, serves as a one-stop digital resource where consumers can access credit scores and reports from all three main credit bureaus—TransUnion®, Equifax®, and Experian®—and understand what is most affecting their credit. As part of its mission to deliver information and insights which enable consumers to keep their finances and families secure, ScoreSense provides customers with cutting-edge credit monitoring and ID theft protection to safeguard and maintain their credit. These products include $1 Million Identity Theft Insurance to help offset the high cost of repair should identity thieves strike.

“Your credit score follows you wherever you go, and can either open or close important doors for you—yet too many Americans have no idea what their credit score is, or what steps they can take to fully understand it,” said Sanjay Baskaran, CEO of One Technologies. “At a time when so many Americans have been turned down due to bad credit, our innovative technology can give them the insights, tools, and personal support to take full control and protect their credit. ScoreSense places consumers in the driver’s seat.”  

Additional survey findings include:

  • 25% of both Millennials and Generation-Xers who have a credit card carry $4,000 or more in credit card debt every month. One of the factors that determine your credit score is credit utilization, which represents your credit card balances in comparison to your credit card limits. A lower utilization (lower balance vs. credit limit) is better, as it demonstrates that you can responsibly use credit.
  • 56% of Americans in a relationship believe that they have higher credit scores than their spouses or partners.
  • 56% of Americans believe payment delinquency is the worst thing they can do to damage their credit. 
  • 57% of Americans feel bad credit is better than having no credit at all.

The following age ranges were used to determine generation breakouts: Gen Z (18-22), Millennial (23-38), Gen X (39-54), Boomers (55-73).

One Technologies, LLC harnesses the power of technology, analytics and its people to create solutions that empower consumers to make more informed decisions about their financial lives. The firm’s consumer credit products include ScoreSense®, which enables members to seamlessly access, interact with, and understand their credit profiles from all three main bureaus using a single application.