Thursday, February 7, 2013

What Is a Y Credit Score?

What Is a Y Credit Score?

People born during the 1980s and early 1990s are labeled "Generation Y." They also are referred to as "Y'ers" or "echo boomers." Generation Y is found to have lower credit scores than other generations, according to a 2010 article written by Sam Simpson Brafton that appeared on the Consolidated Credit Counseling Services website.



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Job Trouble

    Although Generation Y'ers are better educated than any other group of people, many have trouble finding stable, high-paying jobs. Because they cannot find good jobs, their credit scores suffer from being unable to pay their bills.

Lack of Saving

    Generation Y'ers also have trouble saving money. They often move out of their parents' house at an early age and begin supporting themselves. However, without a stable job, it's difficult to pay the bills, much less save any money. This is often reflected in their credit scores. They have no savings and high amounts of debt.

Student Loans

    Many people in this category are burdened with an overload of student loans. To go to college, many from Generation Y had to take out student loans, and the responsibility of repaying those loans follows. These loans hurt a person's credit score, because they increase the person's debt.

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