Information on Millennials

Providing Information Relating to Millennials to Our Referral Sources As Well As Our Current, Potential, and Past Clients Can Build Our Business While Providing Great Value

The Fourth Annual Credit Score Knowledge Survey done by the Consumer Federation of America found that Millennials fall short in credit knowledge. Although Millennials have a much greater talent for navigating technology and social media, they are far from educated about credit and scoring. About half of Millennials surveyed never pulled a copy of their free annual credit reports whereas with older adults, about 80% use free annual reports to view and learn about their credit. When individuals are unaware of what is on their credit profile it is less likely they will have a curiosity about how credit works. Many Millennials do not even know what kind of information is posted on credit profiles or how scores are tabulated.

Here are some tips on credit to share. For our referral sources, they will appreciate good quality info that they can use to enhance their reputation and gain referrals and trust. In addition, our current customer base will appreciate our interest in helping those they care for, which will give us an opportunity to expand our business and build a great reputation.

-Order your free Experian, Trans Union, & Equifax credit reports free once a year at www. annualcreditreport.com and learn about what is on your credit reports.

-If you purchase the scores offered on the annual site understand they differ from FICO scores. FICO scores are the scores used by most lenders to evaluate a borrower’s ability to pay back loans.

-FICO scores can be purchased at www.myfico.com.

-Paying a credit card, car loan/lease, student loan, store card, mortgage, or overdraft protection late can drop credit scores hundreds of points no matter how small the amount owed is.

-Starting to build credit at a young age can add many points to your scores as the credit ages.

-FICO scores over a 680 could save many mortgage applicants $100,000 or more over the life of a mortgage loan depending on the size and type of mortgage. A 740 FICO score and above is considered excellent credit.

-Credit scores take time to build and improve so starting early is extremely important.

-Co-signing or signing for a friend or loved one’s cell phone, credit card, or loan can extremely damage credit scores for years to come and alter your ability to get loan approvals.

– Being added on as an authorized user to a parent or trusted friends old credit card with an excellent payment history can add points to scores since it increases the average age of credit. Beware of being added on to maxed out cards.

 

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