Credit ratings ‘lowest among younger generation’

Debt worries could be a reason why young adults suffer the most in terms of credit ratings.

Research from Confused.com shows 18 to 21 year-olds to be the highest risk for credit, which could result in many of them being declined for financial products.

Such rejections can further hamper an individual’s credit score, but a tool from the comparison website could be used to decrease this risk.

The application can be used by those seeking out products to ease their money worries and avoids the risk of multiple rejections affecting their ratings.

Joanne Garcia, head of credit cards at the company, said: “Our tool can offer peace of mind, by working out the likelihood of being accepted.”

Parents are becoming increasingly worried about the financial situation of their children, with a report from Aviva showing nearly 50 per cent to be concerned that their offspring will struggle to pay the bills when they stop working.

By James Perkins