Louisville, KY—October 11, 2017—More than two thirds of Millennials report not having a credit card, while fewer than half of people age 30-49 don’t own one and just over 30% of those over age 65 don’t, according to 2016 Bankrate Money Pulse survey. Analysis of Fed data performed by The New York Times in 2016, reveals that “the percentage of Americans under 35 who hold credit card debt has fallen to its lowest level since 1989.”
“While the majority of Millennials don’t have credit cards, many of those who do carry credit cards don’t know how those credit cards work—and that can lead to costly mistakes,” said Carla Dearing, CEO of SUM180, an online financial wellness service designed to be simple and affordable.
LendEDU’s Millennials & Credit Cards survey reveals:
• “Millennials’ knowledge of credit cards is lacking” and “very concerning.”
• 6% of Millennials believe that missing a card payment would “improve” their credit rating.
• 17% said missing a card payment would have no effect on their score.
• 36% have maxed out credit cards.
• 48% carry card balances on which they pay hefty interest charges from month to month.
• 45% didn’t know their credit-card interest rate.
• About 25% carry three or more cards.
“If Millennials want to take advantage of the convenience of credit cares without damaging their financial security, they need to understand credit card basics,” Carla continued.
To help Millennials avoid credit card mismanagement, Carla offers the following five tips:
1. Do not get a credit card while you’re in college. Wait until you graduate and have job that lets you to pay off your credit cards in full every month.
2. If you want to build good credit while you’re still in college, become an authorized signer on your parent’s credit card instead of getting your own. You’ll still build your good credit history without being primarily liable for the credit card debt.
3. When you do open a credit card, understand the terms. Know your credit limit, interest rate, and pay attention to the fine print about what happens when you miss a payment. Contrary to the belief of some Millennials responding to LendEDU’s survey, missing a payment doesn’t improve your credit rating, and your interest rate will probably go up.
4. Pay off your credit card in full every month. If you can’t do this, then you are living beyond your means and it’s time to make some adjustments to your spending.
5. Be thoughtful about which credit card offers you accept. Credit card companies market particularly aggressively to Millennials. Again, read the fine print. Also, you probably don’t need more than one or two credit cards. The fewer cards you have, the more carefully you will be able to manage your account(s).
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SUM180 is an online financial wellness service designed to make planning and dealing with your money simple and affordable. Specifically, SUM180 is differentiated in the following ways:
• SUM180 meets people where they are. SUM180 plans are personalized to help people wherever they are right now on their financial journey; whether they’re just beginning, starting over or well on their way.
• SUM180 plans are simple. They start with only the three (3) most important next steps, making them easier to accomplish, and gives clients a clear picture of where they are.
• SUM180 doesn’t assume clients want to become financial experts to meet their financial goals. SUM180 provides the tools they need, without overwhelming them with “education” and details they don’t need.
• SUM180 offers a community for users, unfiltered, which allows them to explore and share.
• SUM180 serves; never sells. Earning and keeping client trust is SUM180’s highest priority. SUM180 never makes commissions from any of its recommendations, ever.
Additional information about SUM180 may be found at https://sum180.com/.
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Robin Schoen Public Relations