Discover Personal Loans Survey: Majority of Personal Loans Used by Financially Healthy Gen Xers and Boomers

Guía de Regalos

RIVERWOODS, Ill.–(BUSINESS WIRE)–Whether financing a major life event, handling an unplanned expense or
consolidating debt, a personal loan can help provide consumers with
control over their finances. In fact, people in solid financial standing
agree. Sixty percent of those who have used a personal loan
graded themselves as having good or excellent financial health,
according to a survey commissioned by Discover Personal Loans.

Survey results also found that many who have used a personal loan in the
past would consider using one again. More than half of those who have
used a personal loan in the past and grade their overall financial
health as excellent or good say they are very or somewhat interested in
using a personal loan in the future.

“After seeing how beneficial personal loans can be, it’s not surprising
that people in good financial health recognize the value in using them
more than once,” said Dan Matysik, vice president of Discover Personal
Loans. “A personal loan can be an effective option to help people
simplify finances and take control of their financial future.”

The survey results show that Generation X, those between the ages of 35
to 54, and baby boomers, those ages 55 and older, use personal loans
more than millennials, those ages 18 to 34:

  • 54 percent of baby boomers have used a personal loan
  • 49 percent of Gen Xers have used a personal loan
  • 36 percent of millennials have used a personal loan

The majority of Gen Xers, 61 percent, and baby boomers, 67 percent,
picked a personal loan because of the interest rate, followed by the
trustworthiness of the lender, according to the survey.

When asked to rank several categories for which they would most likely
use a personal loan, 53 percent of respondents said they would use one
for a major life event or purchase such as a wedding or car, 31 percent
said they would use it for debt consolidation or something else, and 17
percent said they would use it for an unplanned expenditure like a major
medical expense.

“When it comes to a personal loan, everyone’s situation is different.
Personal loans are a flexible financial tool that can be tailored to fit
a borrower’s individual needs,” said Matysik.

About the Survey

The national survey of 2,000 adults was commissioned by Discover
Personal Loans and conducted by Rasmussen Reports, an independent survey
research firm (http://www.rasmussenreports.com),
March 11- 15, 2016. The margin of sampling error was+/- 2 percentage
points with a 95% level of confidence, except for questions 13-17 for
which the margin of sampling error is +/- 3 percentage points.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America’s cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts and certificates of deposit through its direct banking
business. It operates the Discover Network, with millions of merchant
and cash access locations; PULSE, one of the nation’s leading ATM/debit
networks; and Diners Club International, a global payments network with
acceptance in more than 185 countries and territories. For more
information, visit www.discover.com/company.

Survey Results From Rasmussen Reports

         
    Total   Have you ever take out a personal loan?
  Adults   Yes   No   Not sure
    Excellent/Good   58%   60%   58%   49%

How would you grade your overall financial health?

  Excellent   15%   14%   16%   11%
Good 43% 46% 42% 38%
Fair 30% 30% 30% 35%
Poor 10% 10% 11% 11%
  Not sure   1%   0%   1%   5%
         
    Total   Age
  Adults   18-34   35-54   55+
Have you ever take out a personal loan?   Yes   47%   36%   49%   54%
No 48% 58% 47% 39%
  Not sure   5%   6%   4%   7%
         
Answered By Those Who have taken a personal loan – 998 Adults   Total   Have you ever take out a personal loan?
  Adults   Yes   No   Not sure
Based on your experience with personal loans, how interested would
you be in using the same kind of loan for similar purposes in the
future?
  Very interested 21% 21% 0%   0%
Somewhat interested 33% 33% 0% 0%
Not very interested 23% 23% 0% 0%
Not at all interested 19% 19% 0% 0%
  Not sure   4%   4%   0%   0%
         
    Total   How would you grade your overall financial health?
  Adults   Excellent   Good   Fair   Poor   Not sure
    Very/Somewhat   53%   53%   52%   57%   46%   22%
Based on your experience with personal loans, how interested would
you be in using the same kind of loan for similar purposes in the
future?
  Very interested   21%   31%   19%   18%   20%   0%
Somewhat interested 33% 22% 33% 39% 26% 22%
Not very interested 23% 18% 27% 21% 21% 0%
Not at all interested 19% 24% 18% 16% 29% 78%
  Not sure   4%   6%   3%   6%   4%   0%
     
    Total
  Adults
For which one of these large expenses would you be most likely to
use a personal installment loan?
  Auto purchase   31%
Debt consolidation 11%
Home improvement project 12%
Major medical expense 17%
Vacation 2%
Wedding 2%
School tuition 6%
Something else 5%
  Not sure   15%
         
Answered By Those Who have taken a personal loan – 998 Adults   Total   Age
  Adults   18-34   35-54   55+
What was most important factor to you when choosing your lender for
your personal loan?
  Interest Rate   61%   53%   61%   67%
Fees 5% 5% 5% 3%
Trustworthiness of lender 17% 14% 15% 20%
Ease of application 4% 5% 6% 3%
Loan amount 7% 16% 7% 2%
Something else 5% 5% 6% 4%
  Not sure   1%   3%   1%   1%

Contacts

Discover Financial Services
Rob Weiss
224-405-6304
robertweiss@discover.com
@Discover_News