Here’s why a majority of millennials are rejected for loans, credit cards

Approximately 58 percent of millennials have been rejected for at least one financial product, a new survey has found.

Continue Reading Below

The reason, according to the Bankrate.com report published Wednesday, is because of their credit score.

Meanwhile, the survey found that 53 percent of Generation X -- people aged between 39 and 54 -- and 27 percent of baby boomers -- aged between 55 and 73 -- have been denied a financial product.

“An unintended consequence of the CARD Act, which went into effect in 2010, is that it has become much harder for people in their early and mid-twenties to obtain credit,” Bankrate credit card industry analyst Ted Rossman said in the report.

“Establishing credit is a lot like getting started in your career. Everyone wants you to have experience, but it’s hard to get that first experience,” Rossman added.

The financial products people are most likely to be denied based on their credit score are credit cards and car loans, the survey found.

It also found that 36 percent of respondents making less than $40,000 were denied a credit card as opposed to 22 percent of respondents with an income of $80,000 or more.

The study also found that 44 percent of men felt their credit score is important to them while 53 percent of women said the same.

CLICK HERE TO READ MORE ON FOX BUSINESS

Bankrate.com commissioned YouGov Plc to conduct the study, which was undertaken in July.

Of the 2,498 adults who were surveyed online, 2,106 reported they had been denied a financial service or product, Bankrate said.