OKLAHOMA CITY (KOKH) — Increasing student loan debt continues to make millennial's feel held back financially.
According to the credit reporting agency Experian, millennials report feeling that credit problems will mean trouble getting car loans or even a place to live, and they are right. Bad credit has a ripple effect in the things you are able to get, or even cause you to pay more for things like insurance.
It’s important to note that most millennials are adults now, and thousands of people between the ages of 18 and 34 were surveyed by Opploans, and 14 percent of the people surveyed say they have been forced to live with a roommate, specifically because their low credit scores meant they couldn't rent a place on their own.
The good news is that more millennials are familiar with their credit scores. compared to years past. A factor is that it's a lot easier to check your scores on your phone using personal finance apps. The problem is that the average score keeps decreasing. According to Experian, the average U. S. credit score sits at 675, and is considered good, while the average millennial score is at 638, and is considered Fair.
However, both of those scores could still cause you to be unable to get the most favorable interest rates for something like a car loan. Depending on your income to debt ratio and history of on time payments, a fair score will also create problems or cause you to pay additional fees when it comes to qualifying for a mortgage.
We've got your back with ways to tackle a less than stellar credit score with these tips come from Experian:
Perhaps because millennials report a lot of financial worry, there is a debt-free trend that's become more popular, and an Experian survey shows that 83-percent of millennials believe that being debt free is an attainable goal. The top three millennial debts are credit cards, student loans, and car loans.