16 Money Mistakes Millennials Don’t Realize They’re Making

Ignoring the value of credit

There are costly money mistakes we all make. For Millennials, who were born into a recession and watched their parents struggle with credit, one of those mistakes is avoiding credit. A 2016 Bankrate survey found that less than one-third of Millennials have a credit card account, compared to over half of consumers above age 30. They tend to believe debit or cash transactions are a safer alternative, but they may not be the best bet in the long term.

“Ignoring credit entirely will produce a limited credit profile,” warns Financial Advisor Michael Zaino. “When you do need credit for larger purchases such as a home or a car, lenders will have no way to evaluate your risk. You’ll have more trouble getting a loan and will likely pay higher interest for the unknown risk that you present.”

Zaino, founder of TZG Financial in Charlotte, North Carolina, practices what he preaches. “The day my daughter turned 18, I got her a credit card and taught her how to responsibly use it. I also made sure she was listed on the loan I took out for her car so that her credit would build while she was in college, giving her a head start on life.” Here are 11 easy ways to improve your credit score today.

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