Many millennials have experienced a hard time building credit. According to Experian, millennials have the lowest average credit score of all current generations – a 625. . Without credit, millennials limit their access to financial opportunities such as mortgages and loans.
Millennials: Here’s how to build a credit history with these simple steps.
- Get a credit card –Use your credit card to make small purchases. If a regular credit card is not an option, try to open a secured credit card.
- Make payments on time – Make payments on or before the due date to build good credit. Making payments on time is also important with bills and loans.
- Avoid credit card debt –pay each credit card balance in full every month to avoid falling behind.
- Limit the number of open accounts – Apply for and open new credit card accounts only when it is truly necessary. Too many opened accounts can send a negative message to your potential lenders.
- Check credit reports –Check your credit report every year for any errors or discrepancies. Report any suspicious activity immediately.