Millennials: It’s Good That You Don’t Abuse Credit Cards, But You Do Need To Build Credit Somehow! |

Millennials are having a hard time getting low-cost loans, but for a frustrating reason. Millennials are financially cautious. Even when their finances are in order, they are debt-free, and they are able to set aside money for down payments, their cautiousness sometimes comes back to bite them. See, they take out fewer things on credit and that means they have fewer credit accounts. Unfortunately, conservative borrowers are seen as riskier, because there’s less evidence that they can take out and repay a loan.

Staying Out Of Debt Should Be A Good Thing, But…

What happens is that these young adults who have been staying out of debt have less credit history and so they end up with higher interest rates when they do eventually apply for a loan. Sometimes, they are even denied credit for larger purchases, because they have not had a credit card and have almost no credit history.

Punished for Prudence

In an unfortunate punishment for their prudence, millennials are seen as far less creditworthy than they probably actually are. Unlike older generations, having fewer lines of credit and fewer debts in their credit history doesn’t equate to fewer assets or less income for millennials. They’ve just been good at keeping themselves out of debt and not buying things until they can actually pay for them in full.

Three Active Credit Accounts Will Help

Millennials need to know that for now, they should shoot for having three or more active credit accounts. People with fewer than three active accounts are considered riskier. They’ll be offered lower loan amounts and higher interest rates if they get approved. Millennials considering buying a home should check their credit scores. They should consider opening three lines of credit and occasionally using these lines of credit.

Saving Ten Dollars In Interest Could Cost You Thousands In Interest

Even if you plan on purchasing a power tool or appliance with cash at Lowes, if you have no lines of credit, it is absolutely worth it financially, in the long run, to get a Lowes credit card and pay it later with the money you set aside. For example, even if you do end up having to pay an extra ten dollars in interest for a new vacuum or a new microwave, having this line of credit could end up saving you thousands in interest when it’s time to buy a home.

Most experts feel confident that lenders will come around to understanding this new generation and change the metrics of measuring their creditworthiness, but for now, millennials who want in to a home soon should consider accepting that credit card offer with the ridiculous interest and paying for something they already have the cash for with a new line of credit.

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Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Rare opportunity to own this 3 Bedroom 1.5 Bath 1-Story Home with a Full Partially Finished Basement on 1.12 Acres of Land! This home has 1392 sf of living space on the main level and a full basement that only needs new flooring to make it a great rec room or family room. The spare room in the basement could also be used as a potential 4th bedroom. The kitchen has plenty of cabinets, countertop space, breakfast bar, and comes complete with the appliances. Off the kitchen you will see the laundry room and the half bath. The washer and dryer are included. The dining area is very spacious and can accommodate a large kitchen table. The front living room has wood/laminate flooring and a large window to let in plenty of natural light. Down the hallway you will find the 3 bedrooms and Full Bath with a double sink vanity and tub/shower combo. The main bedroom has it's own private entrance into the full bathroom. The basement has lots of potential and only needs some carpet or other type of flooring to be completely finished. It has plenty of space to be used as a recreational room, or family room. There is an additional room with a closet that could be used as an office, bedroom, or just for storage. No need to worry about parking with the 2-car attached garage that has an entry directly into the kitchen, and the 3-car detached garage. With over an acre of land, this home is perfect for outdoor activities, including entertaining family and/or friends and having cookouts on the backyard concrete patio.

$275,000 Active

7182 N Portersville Road Jasper, Indiana

3 Beds 2 Baths 1,392 SqFt 1.120 Acres

Listing courtesy of Michael Fisher from 4Realty, LLC.

As you enter this 2019 Jagoe home, you are welcomed into the spacious kitchen with stainless steel appliances, beautiful cabinetry, and a large kitchen island. This craftsman-style home features a beautifully maintained interior, an abundance of natural light, and incorporates a flow-through dining and living area. The 3 bedroom, 2 bath split floor plan gives you the perfect amount of privacy and space you are looking for. Adding to the home's appeal are the luxury vinyl floors throughout the main spaces, a spacious 2-car garage, and a professionally landscaped yard that features a patio.

$249,000 Active

110 W Raider Court Huntingburg, Indiana

3 Beds 2 Baths 1,380 SqFt 0.160 Acres

Listing courtesy of Judy Gosman from RE/MAX Local.

$299,000 Active

315 E First Avenue Huntingburg, Indiana

4 Beds 2 Baths 2,320 SqFt 0.259 Acres

Listing courtesy of Stacey Thieman-Wright from THIEMAN REALTY.