I just saw some folks talking on the talk show Cavuto, and they were stating Millennials do not no how to use credit scores to their advantage or what benefits there are to having a good credit score.
My question is about it is, does it really matter? A quick Google search on “millennial debt” , one would pretty much see that most of them have student loan debt primarily. That isn’t to say that there aren’t those that have other debt.
Here is one such study by Pew Research.
While it is important to know the very basics of math and how to use it to figure out how they are doing (i.e. $1 income and $2 expenses = bad, $2 income and $1 expenses = good). I wonder how important credit would be since the Millennial could choose the path less traveled and opt to get little or no credit and pay their debt back as soon as humanly possible, especially if they are able to stay at home with their parents. If/when they choose to get a mortgage, they can do it without having some fantastic credit score but by saving up 25% or more for the downpayment and manual underwriting. I know that sounds ridiculous given that Millennials are so in-tune with automated everything due to the nature of the technical era in which they were born. And manual underwriting takes a little longer and may cost a little more by way of the interest rate, but that may be just what the doctor ordered for their futures.
I’m at the end of the old fart generation called the Baby Boomer generation, so I’m not sure where they stand. Although I know that a nephew of mine is in the Millennial Generation, he does live at home and is working full time and luckily his work also pays for his trade school costs.
Are you a millennial? How do you handle your finances?