Which Americans have the best credit?
Hint: It's not Gen Y, which is just starting on the road to building good credit scores.
This post comes from Jeanine Skowronski at partner site MainStreet.
The credit bureau analyzed data from its user base and found that collectively those 66 years or older have the best credit reports, netting a VantageScore of 829. Comparatively, baby boomers (those ages 47 to 65) averaged a 782, Generation X (those ages 30 to 46) averaged a 718 and Generation Y (those ages 19 to 29), whose members are just starting to build credit, averaged a 672.
Nationwide, the average debt in the U.S. is $78,030, including mortgages and other types of debt, and the average VantageScore is 751, which is pretty subpar, considering VantageScore operates on a scale of 500 to 990. Post continues below.
The results of Experian's analysis aren't entirely surprisingly, given that age does tangentially affect your credit score. (As MainStreet has previously reported, older borrowers usually net more points since their credit histories tend to be longer, thanks to the passage of time.)
However, it is interesting -- and perhaps a bit worrisome -- that the gap in debts owed by baby boomers, who are at or rapidly nearing retirement age, and Generation Y (who are not) is not all that wide. Those ages 47 to 65 owe, on average, $101,951 in borrowed funds, while those ages 30 to 46 owe about $111,121.
Scores aside, there was one thing all four generations had in common. For each, including the youthful Generation Y, the largest source of debt was a first mortgage.
More on MainStreet and MSN Money:
Credit Scores are a joke, the credit reporting agencies allow parties to report "unproven allegations of debt" and while the party reporting the allegation of debt makes no attempt to obtain a court issued judicial judgement. The agencies continue to report the "allegation of debt" as a negative in the individuals credit report. Many big business entities with computer driven credit reporting programs use the Negative Credit Reporting as a means of attempting to collect an UNPROVEN ALLEGATION of debt from a party they deem to owe them monies. Its a GUILTY until you prove yourself to be innocent driven reporting system and once again the American consumer and taxpayer is harmed by the actions of these negative reporting actions of UNPROVEN ALLEGATIONS of debt.
No negative debt reporting should be allowed to be on a credit report for more than 18-20 months without the party making the "allegation of debt" initiating a judical attempt to collect the purported debt that they claim to exist. Most of these companies refuse to take action in court because they know that they will be counterclaimed or lose the action to convert an allegation into a judgement.
Once again our elected representatives have failed the American citizen.
I agree with others comments that the way credit ratings are calculated is a joke. They are out of date with reality. My score is reduced because I don't have car loans and yet I have $50,000 worth of cars in my garage that I saved for and purchased for cash. I use my credit cards for expenses and so depending on when my rating is taken my score is lowered simply because I have used up credit availability that my employer will reimburse me for at the end of the month. None of my savings are taken into account. The scary thing is that so much in our every day life is based on these ratings, car insurance, home insurance etc. What I find even more scary is that these credit agencies (and the banks) then try and sell us identity theft protection when it is they that could really put a squeeze on identity theft if they really wanted to. It is time that the government watchdogs took a long close look at the credit agencies I think.
Using credit, unless it is cash back CC and it is paid off monthly, is nothing but a loan against ones future earnings. I am one who has always lived below my means and have not used any kind of credit, except cash back credit cards which are paid off monthly, since 1968. I have never purchased a new automobile. In my opinion one of the major sources of financial failure for the average family is automobiles. If you wish to get a head financially never purchase a new auto and always think a vehicle is for transportation to get you from point X to point Y and not as a status.
I'm just inside the Baby boom (63) and I have credit scores of 815 and 795. I have two rentals with mortgages (one quarter value) and my own home with no mortgage. Paid three mortgages off on my residence to start myself in rentals and income property and paid it off. Pay off all my bills on time. Never buy more than I need. It's not hard to have a good credit score. Pay your bills and don't buy a lot.
Here's the secret.
1. Only buy appreciating assets or producing assets- real-estate, homes, rentals, or preferred stock and annuities.
2. Don't buy anything else unless you absolutely have to.
3. When you buy a car, buy a cheap good one and run it into the ground for 300,000 miles Pay it off quick and maintin it well. It will cost you less ot rebuild it and maintain it than buy a new one.
4. Stop smoking drinking, using drugs, and buying junk.
If you don't want to do it- fine be a wage slave all your life.
My husband and I from day 1 have always had good credit, due to the fact that he was a smart and mature man that kept his family first but within boundries. Age has nothing to do with it- either you take responsiblility or you don't.
LibsMakeMELaugh - I remember reading recently, a statement in an Agatha Christie mystery. It was quoted by her female sleuth, Miss Marple. She said that when she was 16 her aunt told her this, but she didn't believe it. Now she did. The quote:
"Young people THINK old people don't know anything. Old people KNOW young people don't know anything." Sounds satisfactory to me.
I'm 56 and I owe 0$. .No bank accounts I don't buy into all the banking schemes and I won't put my money somewhere where the government can come and get it when it wants to. Besides the interest earned now is not worth the trouble.
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