How Much Debt Do Millennials Have?

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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.

Experian reports that $ 27,251 in non-mortgage consumer debt includes any revolving or installment loan, including Credit cards, Student Loans, Car loans and / or personal loans.

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.

Creditworthiness status 2020

Results for 2020 by generation Gen Z (up to 24 years) Millennials / Gen Y (ages 25 to 40) Gen X (Age 41-56) Boomer (Age 57-74) Still (from 75 years)
Average VantageScore® 654 658 676 716 729
Average number of credit cards 1.64 2.66 3.3 3.45 2.78
Average credit card balance $ 2197 $ 4651 $ 7718 $ 6747 $ 3988
Average revolving usage rate 30% 30% 32% 24% 13%
Average number of retail credit cards 1.64 2.1 2.59 2.63 2.21
Average credit card balance $ 1124 $ 1871 $ 2353 $ 2100 $ 1558
Average non-mortgage debt $ 10942 $ 27251 $ 32878 $ 25812 $ 12869
Average mortgage debt $ 172561 $ 232372 $ 245127 $ 191650 $ 159517
Average arrears rates 30–59 days overdue 1.60% 2.70% 3.30% 2.20% 1.20%
Average default rates 60–89 days past due 1.00% 1.50% 1.80% 1.20% 0.70%
Average interest on arrears of 90–180 days 2.50% 4.40% 5.30% 3.20% 1.90%

How Millennials Can Improve Their Credit Score

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.

The first step in improving your score is knowing where you stand. It’s just yours. to pull free credit report and register for free Credit monitoring service.

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.

CreditWise® from Capital One

Information about CreditWise has been independently collected by CNBC and has not been verified or provided by the company prior to publication.

  • costs

  • Credit bureaus monitored

  • Credit scoring model used

  • Dark web scan

  • Identity insurance

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.


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