Although millennials are less likely than baby boomers to identify milestone life events that could affect their credit, more than half of them are checking their credit when taking out a mortgage loan.
An online survey from TransUnion of 1,136 U.S. consumers ages 18 and up found that less than half of millennials surveyed are aware of major life events that could positively or negatively affect credit.
TransUnion determined that consumers of all ages are usually unprepared for life events when credit is needed because they do not check their scores before or after the life event.
Approximately 49 percent of all respondents said they checked their credit when planning for or experiencing a milestone. However, 58 percent of those surveyed noted that they did check their credit score when seeking a mortgage loan, indicating that they were slightly more likely to check their credit when taking out a loan.
“It’s important for all people to understand the effect of life milestones on their credit so they can put themselves in a position to reach personal and financial goals," said Ken Chaplin, SVP at TransUnion. "This survey reveals that many people, especially younger adults, may not be prepared for how certain events, such as marriage, buying a home or getting a car could alter their credit scores.”
The availability of mortgage credit to borrowers declined slightly in the second quarter of 2015, despite impactful federal efforts to expand the credit box.
“It’s important for all people to understand the effect of life milestones on their credit so they can put themselves in a position to reach personal and financial goals."
The Urban Institute's Housing Finance Policy Center reported in their Housing Credit Availability Index (HCAI) that mortgage credit availability decreased from 5.5 in the first quarter to 5.3 in the current quarter.
However, the report notes that credit access remains above the all-time low of 4.6, which occurred in the third quarter of 2013.
Effort to expand the credit box have been made on both ends and are "having an impact" within the mortgage industry.
Click here to read TransUnion's full report.