Many Millennials have shown that they prefer to pay for items in cash rather than run up large amounts of credit card debt. A report by Experian in July 2015 shows that young consumers use less credit than older shoppers in an attempt to remain out of debt, although this does cause some issues when they apply for loans later in life. Without a credit history, these Millennials are finding that their credit score is, on average, lower than those who fall into the Baby Boomer and Generation X categories.
Fortunately, there are many things Millennials can do to improve their credit scores:
- Review their credit report. Millennials can check their credit score and read their credit report for free within minutes using Credit Manager by MoneyTips to see what, if anything, is affecting their credit.
- If the credit report reflects anything that is incorrect or missing, the consumer should contact the three main credit bureaus Experian, Equifax, and TransUnion to let them know of these errors.
- Stay current on their bills. By making their payments on time, young consumers can show lenders that they are capable of meeting their financial obligations. Using automatic bill pay is one way of making sure this happens.
- Finally, to start building up their credit, Millennials can take out a secured credit card. These cards need a deposit, but with a year of on-time payments, consumers can greatly increase their score.
If you would like to monitor your credit to prevent identity theft and see your credit reports and scores, check out our credit monitoring service.