Where Are the Credit-Worthy Millennials?

[Editor’s note: This is a white paper from LexisNexis. LexisNexis is a Bronze Sponsor at LendIt USA 2017 which will take place on March 6-7, 2017 in New York City.]

Millennials (individuals born between 1981 and 1997) have surpassed baby boomers as the largest living generation in the U.S. The Pew Research Center predicts their dominance will continue to grow for the next 20 years. Driven by an influx of young immigrants, their numbers will swell from roughly 75 million in 2015 to just over 81 million in 2036.

These 19- to 35-year-olds are at a key point in their financial lives. They are establishing their careers, accumulating wealth and building relationships with businesses. Yet millions of millennials lack traditional credit data and as a result are effectively ignored by the financial sector. This inability to access credit directly affects their ability to buy homes and build wealth, altering their economic trajectory for the rest of their lives.

According to LexisNexis® Risk Solutions research, approximately 20% of millennials do not have a traditional credit score or report, making it difficult for businesses to confidently provide them with financial products and services. Yet a large segment of these young consumers are financially responsible and actually score as prime or near-prime using non-tradeline sources of credit risk data.

Lenders that take a closer look at this underserved segment have an opportunity to forge relationships that bring new borrowers into the financial system, generating significant growth for those borrowers and their financial institutions. In this paper, we leverage public and proprietary data to address three important questions about millennials:

  1. Where do they live?
  2. Are they financially healthy?
  3. Do they own homes?

Download the full white paper: Where are the credit-worthy millennials?

One response to “Where Are the Credit-Worthy Millennials?”

  1. Great white paper. Very insightful article. Keep up the great work!

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