What Percentage of 18-22 Year Old's Credit Applications Declined?
Answer (from ID Analytics report): 72%
Questions for students:
- Why do you think 18-22 year olds aren’t able to access credit?
- May not be familiar with CARD Act which requires those under 21 to have a co-signer or independent source of income to apply for a credit card.
- Lack of experience with credit leads to low credit scores
- Bad experience with credit may be another reason for low credit score
- When do you think you will apply for credit for the first time? For what purpose?
- What steps can you take to increase the chances that you would be approved for credit?
Check out this NGPF Activity: How Can I Improve My Credit Score? in which students will conduct online research to discover ways they can improve their credit score.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.
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