Baby Boomers have been dubbed the generation with the highest credit score rating in the nation, a new survey has revealed.
Out of all Australians, those aged between 55 and 73 were recorded as having the best handle on their finances, putting them in a far better position than Millennials.
According to the study undertaken by Finder, Boomers scored the highest of any generation with an average credit score of 759. The figure was ranked in the “very good” section of the analysis with 1,000 marking the highest credit score possible. This means Boomers have a better chance of obtaining a home loan or a line of credit.
This score was compared to Generation Z (3 to 23-year-olds) which scored an average of 703, Generation X (39 to 54-year-olds) on 689 and Millennials (23 to 38-year-olds) who scored substantially lower than other generations on 666. The score for Boomers was also higher than the average number nationally which sat at 685.
While Boomers are reportedly in a much better position than the younger generations, Finder personal finance expert Kate Browne said a bad credit score is not something to ignore.
“Many Australians may be wondering how the Banking Royal Commission will impact their ability to borrow, a good first step is to make sure your credit score is in good shape,” she explained. “A poor credit score at 30 is particularly troubling as it could make it more difficult to take out a loan for a house, car or even a personal loan for a wedding.”
According to the survey of 2,003 people, a whopping 61 per cent of Aussies don’t even know their credit score. This is made up of 13 per cent who don’t know how to access it and 6 per cent who don’t know what a credit score is.
Discussing the importance of the score in helping to manage finances, Browne said everyone should be aware of where they sit compared to the rest of the country.
“Next to your age and income, your credit score is one of the most important numbers in your life,” she added.
“Knowledge is power. If you know you have a bad credit score, you can start to do something about it.”
In order to obtain a good credit score, Finder recommended making timely payments towards your debt to display improved financial discipline.
The comparison site also suggested avoiding making multiple credit applications in a short period of time, as this will lower your credit score as well as indicating to lenders that you are under financial stress.
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