Millennials don’t understand how to build credit, study says

[lockedout]

No it wouldnt. If you dont "borrow" you dont establish any "credit".

That's not true at all.

[Jayburner]

haha millenials, they are complete garbage.

[munkeyinorbit]

Instead of being taught how to gain credit scores, people should be taught how to avoid being slaves of banks and to stop using credit cards and stop taking on unnecessarily loans.

Maybe they should also teach them how to make their own Guy Fawkes Masks, how to make their own fight clubs and how to commit domestic terrorism to take down those greedy institutions.

We get it grandpa, you listen to Rage Against the Machine.

[Jayburner]

Maybe they should also teach them how to make their own Guy Fawkes Masks, how to make their own fight clubs and how to commit domestic terrorism to take down those greedy institutions.

We get it grandpa, you listen to Rage Against the Machine.

you have a problem with RATM?

[Hammerfest]

Oh I agree 100% with this, but I also do not expect people to save up $200K for a house and pay cash.

Then they should buy a $60K house instead.

[Aqua]

Millennials don't trust banks.

I wonder why?

[Flarelaine]

Nobody is saying you cant do that with a credit card.

Admittedly. I just don't go out of my way to get a credit card. Debit cards are the default around here, although I am allowed to overdraft mine. Would that make it a credit card?

[kamuimac]

Oh I agree 100% with this, but I also do not expect people to save up $200K for a house and pay cash. It's not realistic unless you live with your parents until you're in your 30s. As I've said before, the only debt that I find acceptable is student loans and mortgages.

you poked on something very interesting

what is bad about living with your parents if you are poor ?

unless you support all marketing departments all around the world selling lie that everybody needs to live on their own regardless of their financial status.

this is why are lot of poor people stay poor - because they waste money on illusion of independece.

100 years ago and before there was no such problem - families lived together and this system worked for centuries - suddenly since financial and housing bubble everyone even poorest people think they deserve living on their own and then drown in high interest rates.

in this case what would be so bad if poor person would live with his/hers parents till 30 save at least 50-100 grand and then take much smaller credit with much smaller interest rates. ah ye - he coulnt brag how he lives on his own since 20ties i get it

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Admittedly. I just don't go out of my way to get a credit card. Debit cards are the default around here, although I am allowed to overdraft mine. Would that make it a credit card?

technically kinda - your model is just 2 months ahead of them - you have saving that you spend however you like - most of poor people dont spend spend savings they spend money they dont have yet only to pay off debt/credit after they recive salary

[Low Hanging Fruit]

Credit has its uses don't get me wrong. But I think it's responsible for a lot of the out of control costs we have today as well. Homes are cars aren't priced around value or what people can pay for them. Rather what they can barrow for them.

[shimerra]

Then they should buy a $60K house instead.

Is this 1970 or is there literally any view you hold based on reality? Any house you get today for 60k is going to be mostly unlivable requiring significant investment to bring it there and almost definitely in a shit area.

[Deleted]

How about people don't spend money they won't have for another 30 years?

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Is this 1970 or is there literally any view you hold based on reality? Any house you get today for 60k is going to be mostly unlivable requiring significant investment to bring it there and almost definitely in a shit area.

In Hungary you can get a proper sized, renovated flat for 60K. And we earn a lot less than the west. You don not need a house with a big ass garden. It is a nice dream and you should open a savings account to achieve it eventually. You do not need to move to a house at 20.

[quijote3000]

Don't use a credit card. Problem solved

[zenkai]

Debit cards exist.

If someone steals your debit card, it can be used a CC, yeah you are not responsible for what is bought if not stolen but that money comes directly out of your bank account. If you're a person living paycheck to paycheck that can hurt.

Credit Card on the other hand is much safer, on top of that I get reward points just for using it, I pay it off at the end of every month. My CC has been cloned once, glad it wasn't my debit card.

[Deleted]

Credit Card on the other hand is much safer, on top of that I get reward points just for using it, I pay it off at the end of every month. My CC has been cloned once, glad it wasn't my debit card.

Until you suddenly don't for whatever reasons. If your debit card gets stolen you can just disable it right away can't you? And you will never spend money that doesn't even exist yet and certainly isn't yours until the end of the month.

[Puremallace]

Love getting lectures from boomers who think using their homes as credit cards is a good idea. Credit is a debt trap plain and simple. My generation learned this the hard way when the economy got run into the ground in 08'

Hell this current market melt up is because of too much easy credit inflating asset prices.

[RussW210]

Instead of being taught how to gain credit scores, people should be taught how to avoid being slaves of banks and to stop using credit cards and stop taking on unnecessarily loans.

This. My friend is 35, has been working his whole life, doesn't have a dollar to his name, and just got out of credit card debt. He just moved out of his parents house (forcefully, they sold it) and is now forced to pay $1300 for a tiny apartment and be even more dead broke.

The sad part is - he was broke when he was living at home. And now he's broke and forking over $1300/month. It's sickening to think if he adapted his lifestyle while he was living at home, to the one he's living now, he could have saved all that money (albeit he's making a little more at his new job now).

Millennials suck at saving money in our consumption economy. Riding around in a Mercedes that they leased at 17...

[mvaliz]

How does this compare to the non-millennial populace?

That's my first question as well.

My generation (gen-x) is notoriously known for being horrible with credit. If that article is true (i doubt), than once again Millenials would be smarter than my gen.

[zenkai]

Until you suddenly don't for whatever reasons. If your debit card gets stolen you can just disable it right away can't you? And you will never spend money that doesn't even exist yet and certainly isn't yours until the end of the month.

My CC was cloned, it wasn't stolen, if I had used my debet card it would have came out of my account. Also I am smart enough not to spend more than I can pay off, I have plenty of money in my checking and saving that would pay off my credit card if for some reason I maxed it out.

[Tinykong]

Millennials suck at saving money in our consumption economy.

This really isn't a "millennial" problem, it's how our economic system is designed. People are forced into a perpetual cycle of just getting by.

Prices for everything are constantly going up, you get a 2% raise at work and the following year that raise is gobbled up by inflation and bullshit price increases. I pay more for health insurance premiums (not including the cost of care) than my parents paid for their house as a percentage of their income 30 years ago.

Companies have realized that people are fine paying $22/month for everything in their life, for the rest of their life, because most people will never have enough cash saved up to pay for what is required to just be a functioning member of society.

[Symphonic]

I have a low credit limit and we've hit it multiple times. It's frustrating because the bill isn't due to pay it yet, and now we have to use our debit card. We only buy things we have money to pay off immediately, but like the ease of everything on one card and the buffer it puts in my checking account. But yeah, 3000 dollar credit limit for a family of 4 (me, wife, 5 yr old, 2.5 yr old) is pretty small.

I kind of doubt that hitting the limit really reduces your credit score, because we're around 780 or so and have hit the limit multiple times.