Millennials are saying “no” to credit cards and instead opting to pay as they go.
Avoiding debt is good — to a point. Responsible credit card use builds credit history, and it doesn’t have to lead to revolving debt if the balance is paid in full each month.
A strong credit history will help you get the best rate possible when it’s time to apply for a mortgage to buy a home.
In the meantime, people other than lenders will want to check your credit file to size you up. Utility companies, cellphone providers, landlords, insurers and employers are just a few of the entities that may peek at your payment history.
First, the bad news:
36% of Americans say they haven’t saved a dime for retirement.
More than a quarter of those age 50 to 64 approaching retirement have yet to start saving.
We’ll leave you with the good news:
10% say they started saving for retirement in their teens.
23% started saving in their 20s and 14% in their 30s.
Time is money’s best friend, so small sacrifices today could make a big difference on tomorrow’s bottom line.
No 401(k) at your work? Don’t let that stop you from saving. Contribute to a Roth or traditional IRA.
Paying for college all by “yourselfie”?
Snap a #FutureSelfie of where you see yourself in 10 years. You’ll get entered to win a college scholarship from Bankrate.
You can still love credit cards.
For responsible cardholders, plastic means rewards and security.
*The Bureau of Labor Statistics inflation calculator covers 1913 through the present. These pre-1913 prices were adjusted for inflation using different government data that include 1800 through 2013. Check out the inflation calculator.
Prices back in the day always seem like they’re much lower than what we pay today.
But low prices aren’t always so economical when you adjust them for inflation.
Pay your rent on time?
Want mortgage lenders to know about it?
For renters who want to establish credit, their single largest monthly budget item is not proving to the bank that they can manage their monthly payments.
Good renters are clearly hurt financially by not having their rent reported on their credit histories.
But what about those who are late on rent?
Have a roommate? No kids? Save now while your expenses are low.