Select’s editorial team works independently to review financial products and write articles that we believe will be useful to our readers. We can receive a commission when you click on links for products from our affiliate partners.
Millennials are the fastest growing generation fault This is not surprising when you consider that this cohort is increasingly having children, buying houses, and continuing to repay their student loans. After the Experian Credit status 2020 According to reports, the average millennial consumer has about $ 27,251 in non-mortgage debt and millennials Homeowner Have an average mortgage balance of $ 232,372.
While the average credit card balance for millennials is $ 4,651, most have their payment plans under control. Only 2.7% of Millennials are 30 to 59 days behind with their payments, and even fewer (1.5%) are 60 to 89 days behind. The default rate for accounts that are 90 to 180 days overdue is 4.4%.
Here is a full breakdown of Experian’s 2020 results.
The Millennial’s Average VantageScore® is 658. While a positive credit history is one factor in determining your creditworthiness, it isn’t the only one, so millennials can’t blame their mediocre values on their youth.
With a score of 658, Millennials are right on the cusp of becoming one excellent creditthat can improve your chances of getting approved for the best financial products and interest rates. The difference between a credit score of 658 and a credit score greater than 660 is significant and it is well worth working towards.
CreditWise® from Capital One is a free credit monitoring service that provides account holders with their weekly updated VantageScore, plus dark web scanning and social security number tracking.
Information about CreditWise has been independently collected by CNBC and has not been verified or provided by the company prior to publication.
Credit bureaus monitored
Credit scoring model used
Dark web scan
Be sure to check that Mistakes in your credit reports if you are already at it: 26% of the participants in an FTC study found at least one flaw in their reports that could make them appear riskier to lenders.
Once you know where you stand, there are five simple steps you can take to improve and / or maintain your score.
1. Make payments on time
Paying your bills on time is the most The most important thing you can do to increase your score. Both FICO and VantageScore, which are two of the most important credit card scoring models, consider payment history to be the most influential factor. Even if you cannot pay the full amount, you always pay at least the minimum amount.
2. Set up autopay
If you can’t remember to pay your bills on time each month, link your credit card to yours checking account and approve a monthly automatic draft to pay your bills. After a few months of regular on-time payments, you’ll be amazed at how much Autopay increases your score and then protects it.
Do not miss: 6 tips for choosing the best checking account
3. Limit new accounts
FICO and VantageScore check the number of your credit requests. Every time you apply for a new credit card or loan, or even ask for a credit limit increase, you can add another request to your report. If you’d like a new card but aren’t sure you qualify for it, please submit it a pre-qualification form online, which shouldn’t affect your score.
4. Keep track of your credit history
Your Credit utilization rate (CUR) is the total amount of credit you have used compared to your available limit. Experts recommend that you try to keep this amount below 10%. So if you have a $ 10,000 credit limit, avoid carrying more than $ 1,000 at a time. Lowering your CUR should increase your score.
5. Receive credit for paying other bills
Get a credit on your credit report for on-time payment of your utility bills, streaming subscriptions, and cell phone payments by signing up for. Sign in Experian Boost ™. That This is how Experian Boost works is easy: just connect your bank account (s) to your Experian Boost account. It identifies your payment history for utilities, telecommunications, and streaming services – that includes Netflix®, HBO Max ™ and others. Review the information and confirm it should be added to your Experian credit file. You will then receive an updated FICO score in real time. (This service will only help you, your FICO result.)
Note to editors: Opinions, analysis, reviews or recommendations expressed in this article are solely those of the Select editors and have not been reviewed, approved or otherwise endorsed by third parties.