Grappling with credit woes? A few ways millennials — or anyone, really — can dig themselves out
When Joe decided to put a $2,000 down payment on his first car, which cost $11,000, he did not think it would be too difficult. The high-school English teacher, who declined to give his last name, was 25 at the time, had been teaching for almost two years on a salary of approximately $58,000 a year.“I was told I had to put down more money than I could afford, or find a co-signer in order to be approved for a loan,” he told MarketWatch. Joe had a poor credit rating.
OppLoans found that 24% of those surveyed said they never learned how to build good credit in the first place, and 15% reported that their level of debt is unmanageable, with one in five admitting that they don't have control over their finances. The younger a person is, the more likely they are to be grappling with credit woes: 43% of millennials have poor credit, compared to 20% of boomers and just 9% of the Silent Generation, according to 2016 data from TransUnion. “Because they’re younger, millennials have shorter credit histories, which will impact their credit scores,” Kaplan explained. “Older generations have had more time to build a strong credit history that will help offset early mistakes.
“It became harder for people to get access to credit cards, so they weren't building credit while in college,” Erin Lowry, financial blogger and author of “Broke Millennial,” told MarketWatch. “Having [student] debt in college doesn't mean you’re racking up credit; so once you're out, with no credit history, it takes a long time to build credit, and makes it difficult to rent an apartment or get an auto loan.
For example, more than one in five credit-card users have wrongly carried a balance to help improve their credit scores, according to a 2018 CreditCards.com report. But carrying a balance is not one of the five factors that makes up a FICO FICO, -1.98% credit score. Be consistent. Start pumping positive information into your credit report. To do this, make one or two small purchases within your budget every month, pay it off on time and in full, and repeat, Lowry said. Don’t use more than 30% of your available credit limit, she added. "Utilization makes up 30% of your overall credit score, and the goal should be to use no more than 30% to demonstrate responsible credit behaviors,” she said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Business group issues wake-up call on China's corporate 'social credit' planThe rollout of China's controversial corporate 'social credit system&q...
Read more »
‘America’s Got Talent: The Champions’ & ‘American Gods’ Help Drive Fremantle Financials In First Half Of 2019America’s Got Talent: The Champions and the second season of American Gods helped drive revenues and profit at Fremantle. The RTL-owned producer and distribute reported revenue growth of 23.2% in t…
Read more »
RTL Group Hits Half-Year Revenue Record as SVOD Business BoomsEurope's leading commercial TV group sees strong digital and online growth, but traditional TV channels and production operations still provide the bulk of its financials.
Read more »
Eric Dickerson Says Racist Colts Fans Mocked Him With Black Doll, ChickenEric Dickerson says Colts fans booing Andrew Luck brought back hurtful memories.
Read more »
Armed protests expected at US Muslim convention amid rising IslamophobiaTop Democrat politicians are due to attend a conference organised by Muslim-American groups, but far-right activists are also planning to turn up.
Read more »
Trump slow-walks Ukraine military aid meant to contain RussiaUnited States military aid to Ukraine has long been seen as a litmus test for how strongly the American government is pushing back against Moscow.
Read more »