Major Credit Scores Gap between Generations

Aug 28, 2015

Generation X- ages 30 to 46- is thus far the generation that has the most amount of personal debt. A new study by Experian shows that this generation has an average of $111,121 per person. On top of that, they sport a credit score of only (718), while Baby Boomers average about $101,951 worth of debt and rock a credit score (782). Meanwhile, Generation Y, ages 19 to 29 are so far averaging $34,765 in personal debt, but with the worst credit rating (672). This disparity has some credit professionals scratching their heads.

So what explains this tumultuous trend? The study suggests that the three age groups manage their money in drastically different ways. Although the credit score gaps are drastic between the oldest the Greatest Generation (829), and the youngest Generation Y (672), the amount of personal debt between them are not very far off. The study found that every generation’s biggest debt contributor is their first mortgage. But Generation X’s mortgages are 5% higher other generations. Second mortgages make up 5.9% and car loans are 5.8% of debt. Baby boomers fair the same or a little under national averages, except in the category of second mortgages where they are 23% higher than the national average.

Generation Y’s main challenge is their low credit score, which can be attributed to maxed out credit cards and late payments. This generation has the highest rate of late payments and debt that is sent to collections. Together these elements slowly chip away at credit scores. But Generation Y does have time to change this trend. Short credit histories can be repaired faster, so by the time they want to make large purchases they will be able to if they are committed to credit repair. The study did not include how high unemployment rates or challenging economies could correlate with credit scores.

Many consumers are in debt and must acquire professional help to repair credit. Reputable credit repair merchants are in short supply, and can help consumers who are committed to raising their scores over time. EMB is the nation’s number one payment processor to support your credit repair merchant account and can have you approved in as little as 48 hours.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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