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Tips to Help Young Adults Master Credit as a Financial Tool

Millennials and Generation Z are poised to make or break the consumer confidence index in…

  • November 5, 2019

Millennials and Generation Z are poised to make or break the consumer confidence index in the next few decades and have been labeled slackers, praised as multi-tasking wizards, credited with driving the digital economy and branded “Children of the Great Recession.”

Both groups also have a strong drive to be financially successful. Recent surveys from credit bureau Experian suggest that Gen Zers and millennials are very interested in their financial health:

  • 35% of millennials have checked their credit score within the last week
  • More than 1 out of 3 (38%) Gen Zers find personal finance topics interesting
  • 51% of millennials worry about their credit scores
  • 76% of recent high school graduates agree a class about managing finances should be required in high school2

Not surprisingly, digital tools are important to young adults, with 62% of Gen Zers preferring to check finances using their smartphone.

“I get the opportunity to talk to a variety of students and young adults,” said Rod Griffin, Experian Director of Consumer Education, “and I don’t think the negative stereotypes stick. They watched the financial crisis firsthand in their early years, and they really don’t want to repeat what their parents went through. They are very interested in learning as much as they can about money, finance and credit and they want to use technology to manage their financial lives. That was a big consideration for Experian’s launch of Experian Boost earlier this year – these age groups will benefit the most from it.”

Experian Boost allows – for the first time – anyone to add utility or telecom information to their Experian credit report, increasing the number of positive payment histories associated with their report and possibly increasing their FICO Score 8 in real time.

Young adults, who may not have much credit history, may benefit the most from using Experian Boost.

For more information and to try Experian Boost, visit https://www.experian.com/boost.

The company is also offering tips for those new to credit:

Start small and grow slowly. A secured account with a small credit limit can establish your credit history and help you start saving at the same time. Good credit and strong savings habits go hand-in-hand. You don’t need a credit card with a high limit to have good credit.

Use the credit you have wisely. Good credit scores are not about having a lot of credit, but rather about how you use the credit you have available. Make a small purchase each month and pay it in full. That will show you can use credit well without taking on debt.

Use your cell phone to improve your credit. With Experian Boost, you can add positive telecom and utility payments to your credit history and possibly boost your credit score. In the past, failing to pay your utility or cell phone bills could hurt your credit, but paying on time didn’t help.

With Experian Boost, that’s changed.

Use technology to make managing your credit automatic. Millennials and Gen Zers are the most technologically savvy generations in our history.

Use technology, such as online banking apps and credit management tools like the Experian app, to automate savings and payments, to alert you to potential fraud and to track your progress as you build your credit history.

Find out more at www.experian.com.