Whether you're a 20-something Millennial or Baby Boomer preparing for retirement, your credit score and profile play an important role at every stage of life. Here's some important advice for all generations as they aim to improve their credit health.
Farnoosh Torabi, Financial Education Partner, Chase Slate | Posted: 9/20/2017
Millennials: Get in the Know
A recent credit health survey conducted on behalf of Chase Slate shows that nearly 1 in 5 Millennials has never checked their credit score. That's the worst out of all other adult age groups. For Gen Y awareness is the first and most important step towards improving their credit health.
Unfortunately, the same survey found that more than older generations, Millennials who have checked their credit score did so out of concern for their credit worthiness or with hopes of getting a loan. But having that knowledge before a concern strikes gives you more time to improve your score if need be.
There are a lot of places where you can get your credit score but few provide the education, tools and key advice to help you manage and improve your credit health today and in the long run. That's why I've decided to team up with Chase as a financial education partner. Chase Slate has a FICO® Score solution where customers not only receive their 3-digit score for free, but also an overview of the reasons behind that number and helpful suggestions on how to manage their credit health.
Gen X: Know Your Strengths and Weaknesses
Unlike Gen Y, Gen X is excellent at checking its credit score. Only 4% have never looked up their score. And this generation has the highest standards as far as what constitutes a "good" score. It makes sense since members of this generation are in the midst of expanding their lives by getting married, buying homes, starting businesses, etc., so it's especially critical that this age group focuses on nourishing their credit health and identifying their strengths and weaknesses to maintain top-notch credit. After all, the better your score, the better your interest rate when you go to open a credit card or borrow money for those big goals.
Boomers: Don't Give Up
More than one in four Boomers (28 percent) admits they have never taken steps to improve their credit score. That may be due to the myth that as you approach retirement and are close to paying off your mortgage and other outstanding loans that your credit health no longer matters. While it's true that you may not be looking for a ton of additional credit in your 60s and beyond, your credit health plays a significant role in other ways worth noting. For example, as Boomers approach retirement, they may realize they need to work longer to make up for a lack in savings. Did you know that potential employers might ask to see your credit report? And for Boomers who want to renew their home or car insurance plan, your credit score could come into play. Some agents will want to check your credit when deciding on rates and discounts.
Farnoosh Torabi is an award-winning journalist, author, television personality and personal finance expert who serves as a spokesperson for Chase Slate.