There are many reasons that why consumers have better credit score averages than younger consumers.
• A long credit history contributes to a higher score. While amounts owed and diversity of credit contribute to your credit score, payment history and credit length together make up half of the total credit score. Since younger consumers, especially those under the age of 25, have relatively short credit histories, it can be challenging to achieve stellar credit.
• Younger consumers may not have a well-rounded mix of credit types, including a mortgage, car loan,credit cards, etc. While they may have student loans and a credit card or two, they may not have had the need to purchase a home or new car, as the older generations did at that age.
• Younger consumers tend to have lower incomes than older consumers. Since many are at the beginning of their careers, they’ll likely earn less than others who are well-advanced into their careers or retired. As a result, they may not qualify for high credit limits, which would lower their debt-utilization ratio. Additionally, it’s often challenging, though not impossible, to take control of debt with a low income.