In our last post, we began discussing how millennials are facing considerably tougher financial circumstances than generations past from an ultra-competitive job market to near-record levels of student loan debt.
We also discussed how many of these millennials are perhaps compounding their problems by making several common — and costly — mistakes when it comes to their credit cards, including failing to understand important terms and essential concepts.
In today’s post, we’ll continue discussing some of these credit card mistakes made by millennials and, as before, spend some time discussing tips offered by experts to avoid making them.
Failing to look over credit reports
In the aforementioned survey undertaken by credit reporting giant Experian, it was discovered that a significant number of millennials were relatively misinformed when it came to taking advantage of the three free credit reports available to consumers each year.
Specifically, they determined the following:
- 35 percent of millennials indicated that they didn’t feel as if they needed to check their credit report
- Roughly 25 percent of millennials indicated that they thought checking their credit report would end up harming their credit score
The reality, of course, is that taking advantage of the three free credit reports will not harm a person’s credit score, but actually help protect it. Indeed, setting aside the time to examine a credit report every three months can not only enable a person to ensure that all of the information concerning their loans and credit cards is correct, but also ensure that they haven’t been victimized by identity theft.
Failing to negotiate
The Experian survey also discovered that only 3 percent of millennials surveyed requested that their credit card company lower their interest rate and that only 10 percent requested a waiver for a late fee.
This is a major mistake, say experts, as credit card companies are often willing to accommodate these requests, potentially saving customers considerable money over the long run.
Above all else, millennials — and people of all ages — should remember that they have options when credit card debt simply becomes insurmountable, including personal bankruptcy. To learn more, consider speaking with an experienced legal professional.