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DALLAS – According to a new survey, 53% of Americans have been denied approval for a new credit card, loan, or even a new car due to bad credit.

The survey, commissioned by credit scoring service ScoreSense and conducted by YouGov, looked into the causes of this economic problem and identified two main reasons. The first was ignorance. The survey reveals that 23% of millennials have no idea of ​​their credit rating at all. The same could be said for 54% of Gen Z, 18% of Gen X and 20% of Baby Boomers.

Another common barrier to personal credit scores was the use of credit cards. The survey shows that 38% of Americans have three or more credit cards, while 13% of baby boomers have six or more. But there’s a problem with Americans not using their credit cards enough, with 28% of Americans between the ages of 18 and 54 who don’t own a credit card. To achieve a better credit score, people should keep a maximum of three credit cards, according to experts.

“Your credit score follows you wherever you go and can open or close important doors for you. Yet too many Americans have no idea of ​​their credit score or the steps they can take to fully understand it, ”he notes. Sanjay Baskaran, CEO of One Technologies, developer of Scoresense, in a statement.

The study also shows that a quarter of Millennials and Gen Xers who have a credit card have $ 4,000 in credit card debt each month. An important factor in the credit score is the use of credit, or the balance of his credit card against his credit card limits. Having a lower balance and a higher credit limit is ideal.

Among other results, 56% of Americans in romantic relationships believe they have higher credit scores than their spouses or partners. The study also found that 56% of Americans think delinquency is the most damaging factor in credit score, and 57% think bad credit is better than no credit.

A total of 1,293 American adults were surveyed online between September 30 and October 1, 2019. The researchers weighted the numbers and made their results statistically representative of all American adults.

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