 TITLE: Why Credit Education Is Important for Millennials CONTENT: Rising Debt, and Desire for Improvement\n---------------------------------------\nRecent research finds millennials are increasing their debt levels at rates that concern some experts:\n*   The New York Federal Reserve reported in February that millennial debt had increased 22% from 2013 to 2018, and now exceeds $1 trillion.\n*   Much of that debt consists of student loans, as the average millennial student loan balance among millennials was $34,504 in the first quarter (Q1) of 2019, up 8% from the first quarter of 2018.\n*   Millennials increased their average credit card debt by 7% in the past year, to $4,712. That's a relatively low average balance, but, given many millennials' relatively recent entry into the credit market, they may not be aware of the need to avoid high levels of credit utilization—the percentage of a card's borrowing limit represented by outstanding balances. Credit education can help millennials understand that credit scoring systems are highly sensitive to utilization, and that balances exceeding about 30% of borrowing limits can hurt credit scores.\n*   The average FICO® Score☉ for millennials is 668 as of Q2 2019, considerably lower than the U.S. average of 703. FICO categorizes a 668 credit score as \"fair.\"\nMany lenders view applicants with a 668 FICO® Score as subprime borrowers—eligible for a variety of loan types, but typically subject to relatively steep interest rates and fees. Credit education can help millennials see that increasing their credit scores by even a few points could lift them into \"prime\" credit territory, possibly making them eligible for a much wider array of loans and credit products under more affordable terms. END