Comparison site Finder found that Millennials have the worst credit score of any generation, with an average score of 666 out of a possible 1000.
According to Finder’s analysis, Baby Boomers have the highest of any generation with an average rating of 759.
Other research by Finder also showed 61 per cent of Australians don’t know their credit score. Of that 61 per cent, 13 per cent don’t know how to access it, and 6 per cent don’t know what credit score is.
Finder’s assessment of the findings is that Australians in their 30s will spend most of the decade “correcting the financial mistakes of their 20s”.
“Many Australians may be wondering how the banking royal commission will impact their ability to borrow. A good first step is to make sure your credit score is in good shape,” said Kate Browne of Finder.
“A poor credit score at 30 is particularly troubling as it could make it more difficult to take out a loan for a house, car or even a personal loan for a wedding.”
The outlook for 2019
After the banking regulator lifted its cap on interest-only lending in January, the mortgage broking community generally agreed that the market for finance would be easier to access in 2019.
However, in this post-royal commission environment, lenders are more stringent than usual with their checks and balances for each new loan applicant.
This was evidenced in figures from the Australian Bureau of Statistics, released this month, which showed total home loan commitments fell by 4.4 per cent in December, getting 2019 off to a soft start.
Click here for a breakdown of the spending and savings habits lenders will be scrutinising in 2019.