Experian releases the first of two reports originating from a survey of more than 1,000 millennials, ages 19-34, about a variety of personal finance topics – from their future views, to loan status, to credit knowledge, to use of technology. The survey follows a July 2015 report from Experian that analyzed credit bureau data and placed millennials last in generational credit score rankings.

1. 1
EDELMAN BERLAND
Experian
Millennial Credit & Finance
Survey Report
Part I
October 2015

2. 2 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
WHO HOW MANY ACCURACY WHEN HOW
Millennials
Nationwide
(Adults age 19-34)
n=1,002
Margin of Error =
+/- 3.1%
Data Collection
Occurred
August 14-19,
2015
Online Survey
RESEARCH OBJECTIVE:
Research Methodology

3. Executive Summary

4. 4 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
• Compared to older generations, Millennials consider themselves to be:
• More Digital: They prefer to conduct their banking on mobile and like brands that utilize new technology
• More Experimental: They want to see innovation in the industry and they’re willing to try alternative
brands
• Less Loyal: They are willing to switch to brands that better suits their needs, such as providing lower
interest rates, better rewards programs or more free services
• Millennials have mixed emotions about their personal finances:
• They feel their finances are holding them back from their life goals like traveling the world or buying a
home
• They feel less financially stable than their parents did at their age, and they worry about being able to
support a family, save enough for retirement, pay off their debt or even just become financially
independent
• In the long run, however, they are optimistic and feel confident about their financial futures
• There are significant knowledge gaps with regard to Millennials and their credit:
• The majority of Millennials consider themselves to be knowledgeable about credit scores and reports,
but they rarely check their credit reports and one in three does not know his or her credit score
Key Findings

5. 5 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Estimated
(Among All
Millennials)
Estimated
(Among Millennials
with Any Debt)
Actual
(Experian Data)
Average
VantageScore®
Score
654 650 625
Average Debt $26,610 $37,820 $52,120
Average Debt
(Excluding
Mortgages)
$12,580 $17,880 $26,485
Q16. To the best of your knowledge, approximately how much debt do you currently have… (Asked if currently have any type of debt,
n=705)
Q21. And, to the best of your knowledge, what is your credit score?
Millennial Financial Snapshot: Perceptions vs.
Reality

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Credit Card
Debt
Student
Loan Debt
Auto Loan
Debt
Home Loan
Debt
Personal
Loan Debt
Other Type
of Debt
Currently Have 38% 36% 28% 20% 17% 14%
Average
Amount $7,799 $20,878 $12,782 $87,859 $6,788 $4,284
Q15. Below is a list of different types of leases, loans and debts. Please indicate whether you currently have or have ever previously had any of the
following
Q16. And, to the best of your knowledge, approximately how much debt do you currently have… (Asked if currently have; Credit card debt n=380,
Student loan debt n=357, Auto loan debt n=281, Home loan debt n=204, Personal loan debt n=175, Other type of debt n=142)
Millennial Financial Snapshot: Current Debt
70%
CURRENTLY
CARRY DEBT

7. Millennials and the “New”
Personal Finance

8. 8 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Q4. To what extent do you agree or disagree with each of the following statements?
Q47. Approximately how many financial mobile apps do you use? (Asked if use mobile device to monitor finances, n=572)
57%
use financial mobile
apps to manage
personal finances
Mobile App Usage
48%
use free financial
services, like Mint,
to manage personal
finances
Free Services Usage
They look to tech and free services to help
manage their personal finances
3
AVERAGE
FINANCIAL
APPS USED

9. 9 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
They are open to trying alternative financial
companies and services
Q40. Prior to taking this survey, how familiar were you with alternative or “non bank” lenders?
Q41. Which of the following statements comes closest to your view…
Q43. Have you ever taken out a personal loan from an alternative or “non bank” lender, such as Prosper, Lending Club or UpStart? (Asked if aware
of alternative lenders, n=676; Results shown off total base)
Willingness to Use Alternative
Services
57%
Willing to use
alternative companies /
services that innovate
to better meet needs
39%
FAMILIAR WITH
ALTERNATIVE OR “NON-
BANK” LENDERS
13%
HAVE TAKEN OUT A LOAN
FROM AN ALTERNATIVE
OR “NON BANK” LENDER

10. 10 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
They are receptive to using “non bank” lenders
for ease, speed and accessibility
Q44. Based on your current knowledge of alternative banking, how likely would you be to use an alternative or “non bank” lender in the
future?
Q45. Which, if any, of the following describe why you would be likely to use alternative lenders? (Asked if likely to use alternative lender,
n=473)
43%
41%
41%
38%
30%
Easier application process
Does not rely solely on my credit
score
More accessible
Faster application & review
processes
More digitally-savvy
Reasons to Use Alternative Lenders
(Shown: Among Those Likely to Use)
47%
LIKELY TO USE
ALTERNATIVE
LENDERS IN THE
FUTURE

11. 11 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
They are willing to switch brands if the
services better meet their needs
Q11-12. Which of the following statements comes closest to your view…
Q10. Which, if any, of the following would make you switch to another financial institution or brand? If another financial institution / brand offered…
47%
43%
42%
38%
35%
32%
31%
25%
23%
23%
Better interest rates
Better rewards programs
More free services
Lower ATM fees
Better customer service
Better identity protection
Better online services
More physical locations
Better mobile app / technology
More lenient late policies
Top Reasons to Switch Financial
Brands46%
LOOK FOR NEW FINANCIAL
COMPANIES / SERVICES
THAT BETTER MEET THEIR
NEEDS
77%
WILLING TO SWITCH
FINANCIAL ACCOUNTS IF
THEY LEARNED ABOUT A
BETTER ALTERNATIVE

12. Millennials & Credit

13. 13 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Knowledge Gaps: Credit Scores & Reports
Q1. How knowledgeable do you feel about each of the following aspects of personal finance? Credit scores & reports
Q17. How often do you check your… Credit score?
Q21. And, to the best of your knowledge, what is your credit score?
Q22. Below is a series of statements about credit. To what extent do you agree or disagree with each of the following
statements?
Perceived Knowledge about
Credit Scores & Reports
71%
KNOWLEDGEAB
LE
32%
DO NOT KNOW THEIR
CREDIT SCORE
61%
CHECK THEIR CREDIT
REPORT LESS THAN
EVERY 3 MONTHS
67%
HAVE QUESTIONS
ABOUT HOW CREDIT
REPORTING
AGENCIES CREATE
CREDIT SCORES
29
MILLENNIALS
OVERESTIMATE
THEIR CREDIT SCORE
BY 29 POINTS
Vs.

14. 14 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
11%
15%
18%
22%
23%
29%
37%
12%
16%
19%
24%
28%
31%
35%
Assume someone will alert me if there’s an anomaly
in my report/if my score is bad
Concerned that I will find something negative
Unsure how to check my credit report/score
Afraid it will hurt my credit score
Have never had a problem with my credit in the past
Do not think to check my credit report/score
Do not feel that it is necessary
Top Reasons for Not Checking Credit
(Shown: Among Those Who Check Less than Every 3 Months)
Credit Report Credit Score
Some think checking their credit is
unnecessary; others simply do not understand
the process
Q18. For what reasons do you not check your credit report more frequently? (Asked if checks report less than every 3 months,
n=608)
Q19. For what reasons do you not check your credit score more frequently? (Asked if checks score less than every 3 months,
n=568)

15. 15 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
66%
57%
56%
54%
53%
53%
42%
20%
25%
24%
27%
26%
26%
43%
14%
18%
20%
19%
21%
21%
14%
Secure a home loan
Secure a personal
loan
Secure an auto loan
Rent a home
Lease an automobile
Qualify for a credit
card
Secure a student loan
Credit Score Impact on Ability to…
Helped No Difference Hurt
Already, Millennials feel that their credit has
had an impact on their lending and leasing
options
Q33. To the best of your knowledge, has your credit card history ever hurt or helped you to secure a loan with good terms? (Asked if credit card user,
n=669)
Q39. In each of the following situations, did your credit score help or hurt your ability to… (Asked if currently have or have previously had; Secure a
home loan n=310, Secure a personal loan n=373, Secure an auto loan n=493, Rent a home n=212, Lease an automobile n=277, Qualify for a credit
card n=572, Secure a student loan n=527)
47%
27%
25%
Credit Card History Impact
on Ability to Secure a Good
Loan
(Shown: Among Credit Card Users)
Helped No difference Hurt

16. Millennials’ Financial
Mindset

17. 17 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Despite having a good handle on their
finances, many feel the odds are stacked
against them
Q4. To what extent do you agree or disagree with each of the following statements?
Have a Handle on
Their Finances
Feel Like They Are
“Going It Alone”
Feel Like the Odds
Are Stacked Against
Them
73%
Feel like they
have a good
handle on their
finances
59%
Feel like they’re
going it alone
when it comes
to finances
57%
Feel like the odds
are stacked
against them
when it comes to
finances
84%
APP
USERS
62%
HAVE
DEBT
60%
HAVE
DEBT

18. 18 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Many worry about their ability to support
themselves – or a family – in the future
Q6. When you think about your financial future, which TWO, if any, of the following are your greatest concerns?
30%
28%
25%
22%
18%
14%
14%
12%
7%
Not being able to support a family
Not having enough saved to retire
Not becoming financially independent
Not being able to pay off my debt
Not being able to fund my children’s education
Not being able to support my parents as they age
Getting my identity stolen
Financial setbacks due to future medical costs
Losing my savings in the stock market
Top Concerns for Financial Future
(Shown: Top Two Choice)

19. 19 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Overall, they feel optimistic about their financial
futures and ability to pay off their current debt
Q4. To what extent do you agree or disagree with each of the following statements?
83%
Say being “debt free”
is an attainable goal
“Debt Free” is an
Attainable Goal
71%
Feel confident about
their financial future
Confident about
Financial Future
70%
CURRENTLY
CARRY DEBT
• 85% App user
• 81% Check
Credit Often
• 77% Men

20. Appendix

21. 21 © Copyright 2015 Daniel J Edelman Inc. Intelligent Engagement
Demographics
Totals may not add to 100% due to rounding
Category Subcategory Percent
Gender
Male 50%
Female 50%
Age
19-24 42%
25-34 58%
Race / Ethnicity
White 58%
African American 14%
Hispanic 20%
Asian American 6%
Other 2%
Region
Northeast 18%
Midwest 21%
South 38%
West 23%
Category Subcategory Percent
Education
High school or less 23%
Some college 38%
Bachelor’s degree 34%
Post-graduate 5%
College Student
Status
Full-time 40%
Part-time 11%
Not a student 49%
Marital Status
Not married 61%
Married 38%
Income
Less than $50K 49%
$50K to less than
$100K
37%
$100K or more 11%