Reblogged from CoreLogic – @Archana Pradhan
Millennials have the lowest credit scores, and highest LTV and DTI Ratios
Often, young households have less credit history (and sometimes no credit history), limited savings, and lower levels of income because they are just beginning their working careers. In contrast, households near or in retirement generally have an extensive credit history, more savings, but may have a limited fixed income if already in retirement.
These trends are borne out when comparing the credit risk attributes of new mortgage loan applicants by age. Millennial applicants have the lowest credit scores when compared with older cohorts. The average credit score for Millennials applying for a mortgage loan in the last three months (March, April, and May) was 730 compared to 738 for Generation Xers, 753 for Baby Boomers, and 770 for the Silent Generation (Figure 1). Compared to other cohorts, Millennials have had less time to build their credit history.
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