How Millennials Became Spooked by Credit Cards

sfSTEM
Tue, 23 Aug 2016 05:37:27 +0000

One day, these Millennials are going to want to purchase a house or rent an apartment. Buy a car. They need solid credit scores to: (1) get approved; (2) get best rates. To have a good credit score, they need a record of credit transactions. Credit cards are the single best source of transaction data.

Treat the credit card as a digital payment method. Getting coffee at Starbucks? Charge it. Buying groceries? Charge it. Public transit? Charge it.

Charge the things one would normally pay via debit or cash. Don’t go crazy, just use the credit card as an easy payment method. Then pay off with the cash one has since it wasn’t used to purchase things.

A solid record like this builds a credit record, and better scores. Valuable when it comes time for bigger transactions one will have down the road.