If you're between the ages of 18 & 29 you are a millennial. Bankrate.com did a recent survey, which found that millennials miss more credit card payments than any other age group that owned credit cards.
Interestingly enough; millennials also own the fewest credit cards, with 63% not owning a credit card at all. From a budgeting and debt management perspective this is awesome! From a credit management perspective this is awful! Credit cards boost credit scores faster than any other form of credit. Credit, in general, is of the utmost importance for this age group since eventually they'll want to purchase a vehicle, rent an apartment, buy their first home, even obtain employment! So, why are millennials running away from credit cards?
Well the recession is one huge factor. To think; most people in the age group graduated college at a time when unemployment was high and debts were even higher. They watched first had as many lost everything they had due to the effects of the economy and living above their means. Why follow in their footsteps? Most have entered the workforce themselves with astronomical amounts of student loan debt and no lucrative job offers; why add another bill to the mix? And add in the fact that statistically most individuals in this age group are not paying off their balances each month or have been known to miss a payment completely (that's a big ding to a credit score); most wonder why add another headache; another thing to remember to pay each month?
Well, credit matters more to this generation than any other. Almost everything is based off of your credit! You can't even get utilities or a cell phone without your credit being checked. Most lenders will tell you that a ‘bad credit score is better than no credit score!'
Millennials “have to understand that it costs you money not to use credit just as it costs you money to use credit,” says Mike Sullivan, director of education at nonprofit credit and debt counseling agency Take Charge America, because low credit scores or no credit scores won't qualify for low loan rates.
If you need assistance in strengthening your credit profile; choosing the right credit card for you; and other tactics to establish a strong credit score; give us a call; we'd love to help! (708) 872-0811
