Credit Misconceptions Millennials Have Explained By National Debt…

The timely payment affects their score more than the available credit they have in it

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There are a number of credit misconceptions millennials have and National Debt Relief lists some of them down in an effort to help younger consumers with their finances. The article titled “3 Surprising Misconceptions Millennials Have About Credit” released October 11, 2017 looks at three common misconceptions millennials have and what they can do about it.

The article starts off by pointing out how credit scores is a complicated subject even for those who knows how to build them. This makes the topic a lot harder for the younger generation to comprehend and understand. As they find it challenging to wrap their head around the concept, millennials might make assumptions along the way which turns into credit misconceptions.

One of these misconceptions millennials have about their credit score is the role credit cards play in the whole equation. A lot of younger people believe that simply having a card can help their score. Though that could count towards their credit utilization ratio given they manage their spending, the biggest factor they need to understand is credit card payment.

As millennials use their credit cards, the timely payment affects their score more than the available credit they have in it. Another part that has a positive effect on their credit score would be keeping that card that would carry a long credit history of their payment. Simply having the card will not help millennials. The article underscores the importance of responsible use to improve their score.

The article also explains how millennials believe that a soft pull would impact their credit score. Some of them even believed that it negatively affected their score more than a hard pull. Millennials need to understand that only a hard pull, especially when done in succession over a short period of time, could make their credit score dip and not a soft pull.

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