Only 3% of Millennials have taken out a mortgage, while 24% have taken out student loans and 27% have opened credit card accounts.
So where is all their cash going? After all, this is the largest generation, with 92 million Millennials.
An infographic from online lender Avant dives into Millennials’ credit portfolios, answering the question: If Millennials aren’t spending as much on a house, what are they spending their money on?
It’s important to note that lenders are taking notice of new Millennial trends and adjusting their financial business to better fit them.
San Francisco-based SoFi, for example, recently announced it is choosing to not use FICO scores when evaluating applicants.
Here’s a clip from the lender’s blog explaining the reason behind that decision:
The FICO score calculation doesn’t consider things like your savings, your cash flow, your ability to pay non-credit bills like water and electric or your future earnings (for example, if you just landed a job with excellent pay). Plus there’s the fact that a growing number of millennials are forgoing credit cards entirely, which is reflected negatively in their credit scores – even though they may be perfectly able to pay off a loan. All of these factors can have a major impact on your creditworthiness, but your FICO score doesn’t take them into account.
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