two young women using their credit cards while shopping

Millennials in Debt: 7 Tips to Build Your Credit

Did you know that nearly 80% of Millenials have a hard time planning for their financial obligations? Additionally, 30% report severe anxiety over their debt and finance.

Many young people today start out their adult lives saddled with immense student loan debt and will struggle to save as they dream of affording new homes, new cars or vacations. Having a good credit score is the foundation of financial independence. Maintaining good credit is important, and sometimes a single large expense can snowball into considerable debt.

Here’s how young people can start building their credit early.


  1. Piggyback. As a first step, ask your parents or guardians whether you can become an authorized user on their card. This will give you a head start in building a credit history.

  2. Start with a low limit card. When you’re ready to have a credit card, get a low limit one first. Use it to pay for small items and pay it in full each month. This will improve your credit rating quickly.

  3. Develop good habits. Get in the habit of making a budget and sticking to it. This will make it easier to avoid overspending and to accumulate savings, which are just as important as having a good credit score.

  4. Set up automatic payments. Late payments are the enemy. Ensuring you make your payments on time and in full is crucial to establishing your credit. Setting up automatic payments means you’ll never forget one.

  5. Build your credit history. Once you’re comfortable with your budget and your existing credit card, consider getting other cards and loans. Focus on small, low-interest credit that you can repay in full and on time. This will help you build a solid credit history.

  6. Don’t use your debit card. Leave the debit card in your wallet and start using your credit card for day-to-day expenses. As long as you make sure to pay off your balance every month, doing this will help you build credit early on and with minimal risk. In addition, some credit cards offer a range of cash rewards and benefits if you use them regularly.

  7. Don’t carry a balance. Carrying a balance on your credit card can lead to the accumulation of debt. Over time, interest accrues, and you may end up paying twice the value of what you bought. Keeping up with interest rates is a common cause of late or missed payments, which can tank your credit score.


Credit Counselling Service in Edmonton

If you’re struggling with poor credit or are finding that you can’t keep up with payments, consider asking for help from a licensed insolvency trustee. Fox-Miles & Associates Inc. provides reliable credit and debt counselling to people in Edmonton, Fort Saskatchewan, Sherwood Park and the surrounding areas! So if you need a hand, be sure to contact us today.

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