Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

Common Misconceptions Millennials Have Regarding Credit

Credit scores can be quite confusing, even for those who know how to build their credit. However, for individuals who are just starting to build credit, it can be extremely complex. Unfortunately, due to this complexity, many people, especially in the millennial generation, find themselves in need of consolidated credit services, sooner, rather than later.

The good news is, by getting to know more about credit, and common misconceptions related to it, these individuals can avoid getting into too much debt.

Misconception 1: By Using a Credit Card You can Build Good Credit

Approximately half of all millennials who have been surveyed believed that if they were to use a credit card, they could improve their credit score. Unfortunately, this is a misconception that is believed by more than just the millennial generation. There are quite a few adults who have well-established credit histories who also believe that by using a credit card they can improve their credit rating and history.

The fact is, credit utilization alone won’t effectively build credit. What builds credit is making on-time payments on the bill. While using a credit card may be one step in the process of building great credit, it is only one and the others have to be remembered, too.

Misconception 2: A Soft Credit Pull will Impact Your Credit Rating

Approximately 45 percent of all Millennials think that a soft credit pull is going to affect their credit rating more than a hard pull will, or that it would have the same level of influence. As a result of this believe, it isn’t too hard to believe that less than half of all millennials have actually checked their credit rating in the previous month. The majority of this generation doesn’t check their credit scores on a regular basis, which means that they are now walking around without really understanding where they stand regarding their credit.

The fact is, soft credit pulls don’t affect a person’s credit rating. Instead, it provides a way for creditors to find out a general overview of your credit. This will help with various decisions including whether or not a home mortgage application or new credit application should be approved. On the other hand, hard credit pulls can actually reduce a person’s credit score (especially if there are a large number done in a short period of time), which is why it is a good idea to allow a creditor to do a short pull before a hard pull.

Misconception 3: The Federal Reserve is Actually One of the Main Credit Bureaus

When a poll was taken, about 40 percent of all millennials were not able to identify the three primary credit bureaus. Also, when they were given a list that included Experian, The Federal Reserve, TransUnion and Equifax, they were unable to determine that the Federal Reserve was not a credit bureau.

Even though quite a few people may find it difficult to name all three of these when put on the spot, most adults know that the Federal Reserve is not a credit bureau. It is very important for everyone to know the names of the credit bureaus so they know who to turn to if there is an issue with their credit.

Even with more information, many people still make credit mistakes. If a person finds themselves drowning in debt, they should turn to Credit Consolidation to learn about the options that are available for their situation. This will ensure they can get out of this debt and restore their credit rating so they can purchase larger items down the road.

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2024, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.