Posted on 08/07/2017 11:19:24 AM PDT by BenLurkin
A few millennials...actually believe that missing a card payment would “improve” their credit rating, the survey said.
“It was only 6 percent, but it actually shocked us,” said Mike Brown, a research analyst with LendEDU and the author of its Millennials & Credit Cards Survey. “They might think that by missing a payment they are gaming the system,” he added.
Seventeen percent said missing a card payment would have no effect on their score.
LendEDU, a Web site that provides information for student loan refinancing, also found that many millennials are spooked by credit cards, yet many use them in self-destructive ways. This leads to late-payment charges and poor credit scores.
The report, which questioned 500 millennials from various educational backgrounds who use cards, also found that some 36 percent have maxed out cards. Some 48 percent carry card balances on which they pay hefty interest charges from month to month.
That doesn’t seem to make a difference to 45 percent of those questioned. They didn’t even know their credit-card interest rate. The survey also found that about a quarter of respondents are carrying three or more cards.
That is too many for young people, most financial advisers say. “One to three is enough to establish a credit history,” said adviser Charles Hughes. “More than that, and you are tempted to run up lots of bills.”
Other young people fear cards could ruin their lives, so they avoid them, the report said. About half polled said they found cards “scary.”
(Excerpt) Read more at nypost.com ...
Not quite.
You need a balance of debt and rotating credit.
I did that for years, and never got an 850.
People still give my 16 Tacoma second looks since it has a manual box.
Recently my CC company to whom I’ve been a faithful client and payer of the card for many years decided to cancel me.
That is without telling me of course.
I called them up when it didn’t work one morning at a gas station.
The gist of the conversation was like this:
CC: your payment was rejected twice.
Me: All I ever saw was the payment posted message both times and my bank account looked about right balance wise.
Me: Why didn’t I get a phone call or some kind of message saying to contact about a payment problem?
CC: No coherent response.
CC: Your account is closed and to reopen it, you need to submit (a lot of documentation) for consideration. I didn’t say so but I’m not going through the hassle.
This is the same crowd that I had to routinely call and write about my address getting changed to a PO box and Zip code that I never had.
I would find out when it changed to the alternate zip when I paid at the pump. If it bombed, plug in the wrong zip and it would work and then change it online.
The change would hold for a couple of weeks to a month. I even had a second pin/password for calling in too.
Life goes on. I’m not worried about it. I just budget my money and keep a closer eye on the checking accounts. If I need a CC, I deal with several credit unions.
I’ve had the debt experience. Being an SC state employee was a step above poverty unless one was an inner circle favorite.
That was years ago. I survived that and the time of the wun which darn near destroyed me a few times.
Business math in the early eighties taught me everything I needed to survive and thrive and be a productive member of society. We had a great teacher, that helped also, he reminded us every day what the minimum wage was and what type of life you would have if that was your goal. I still remember figuring a 30 year mortgage longhand without a calculator.
Some people do not understand the directions for rating something. For example, some book reviewers give one star and then comment “ excellent book, etc “ apparently thinking that one star is the top choice. These people vote in our elections as well....sigh
Some people do not understand the directions for rating something. For example, some book reviewers give one star and then comment “ excellent book, etc “ apparently thinking that one star is the top choice. These people vote in our elections as well....sigh
We like our Chase card as it is easy to contest fraud purchases. Our other VISA is a PITA.
These kids wouldn’t even know how to boil water.
LOL! How correct you are!
Now that nearly 1/2 of the high schools dish out A’s, I can see these companies handing out 850’s for most anything, soon, because to do otherwise would be “racis”!
Here is the credit scoring algorithm.
Pay bills on time? Rotate cards out that have interest rates to 0% rate?
No more credit for you!
The person goes to a car dealership (happened to me) and the salesman says they have a different credit scoring system then FICO. I had over 700 score but the dealer wanted me to pay 12%........
Checkbook?
You don’t understand the new millennials.
My local AM news radio station currently has been running a 60 second ad from some credit assistance agency. The ad announcer states that “the secret credit card companies don’t want you to know is that you don’t have to pay off your credit card.” I about fell over when I first heard this. And the ad has been running for awhile now.
So, this ads “educates” the unfortunate Millenial that the credit card companies secretly really don’t require you to pay them back. Not sure what services this company actually offering, but no doubt there are many who will max out their cards and think there is some way, somehow, they won’t really be required to pay off the credit card... so go ahead, somebody will eventually take care of the bill.
Like Mom or Dad or the American Tax Payers!
About half polled said they found cards “scary.”
“My local AM news radio station currently has been running a 60 second ad from some credit assistance agency. The ad announcer states that “the secret credit card companies don’t want you to know is that you don’t have to pay off your credit card.” I about fell over when I first heard this. And the ad has been running for awhile now.”
About ten years ago or so, an acquaintance of mine took me to a seminar on money management and investing. Some of it was decent, but one speaker was pushing that same nonsense about not having to pay credit card bills. Believe it or not, he advised people to stop making payments and then negotiate balance reductions with their creditors. He also advised people to default on their mortgages so they could get loan modifications. It wasn’t geared toward people who were struggling with their finances, either. It was advised as a way to have more income to invest.
“About ten years ago or so, an acquaintance of mine took me to a seminar on money management and investing. Some of it was decent, but one speaker was pushing that same nonsense about not having to pay credit card bills. Believe it or not, he advised people to stop making payments and then negotiate balance reductions with their creditors. He also advised people to default on their mortgages so they could get loan modifications. It wasn’t geared toward people who were struggling with their finances, either. It was advised as a way to have more income to invest.”
Absolutely criminal. Was he selling some type of ponzi scheme?
Ignorant idiots.
“Absolutely criminal. Was he selling some type of ponzi scheme?”
They were mostly selling life insurance and annuities.
Some/many of those are ponzi schemes!
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