Finding Low Risk Credit Plans: A Guide for Millennials

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As a generation, millennials have proven to be a disruptive force. They’ve rewritten car ownership with ridesharing options, retail experiences with their comfort for e-commerce, and have incorporated technology into basically every aspect of their everyday lives—so it comes as no surprise that their approach to finances is different too. Having come of age during 2008’s Great Recession, millennials are less wealthy on average than previous generations, making low risk credit programs particularly appealing to them.

The Needs of Millennials

Many millennials, born between 1982 and 2004, have reached a stage of life where they are thinking of the next big milestones: getting married, buying a home, starting a family, or other meaningful life goals. Younger millennials are focusing on their education or perhaps opting to travel and see the world. Regardless of what stage in life you’re in, all of these plans need funding.

Nevertheless, U.S. millennials under the age of 35 hold half of the country’s $1.5 trillion in outstanding student loans. On average, students that graduated in America in 2017 did so with $28,288 of debt. Meanwhile, the average for students in Pennsylvania was even higher at $36,193. This collective debt often makes it difficult for millennials to qualify for other loan programs—like mortgages—and to contribute to their savings.

While they may have less money overall to put away, millennials are showing a trend towards being more financially engaged than baby boomers. In fact, millennial parents are reported to perform better than all other generations in terms of how much of their income goes into their retirement saving. In order to maximize these saving opportunities, millennials need access to low risk credit options that support them in reaching their goals.

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Seeking Out Low Risk Credit Plans

As you map the path towards your next big milestones, you should consider low risk credit options with low fees, low interest rates, and other protections that allow them to focus on saving. Here are a few tips to help you get started:

  1. When applying for a credit card, seek out options with no annual fees, low rates, and minimal penalties.
  2. Where possible, ask your bank about a cash rewards card, as that can contribute to your savings goal.
  3. Keep an eye on your credit limit and make sure to adjust it so that it fits within your spending habits.

If you’re considering taking out a personal loan, choose an option that both meets your needs and works for you from a repayment perspective. Citadel, for instance, offers personal loans that feature low interest rates and minimal monthly payments that can be easily incorporated into your monthly budget.

Another flexible, low risk option for millennials is a personal line of credit. A line of credit acts as a revolving account as it allows you to spend the money available to you, repay it, and spend it again as and when you need it. When evaluating a line of credit, consider choosing one that has a fixed rate and overdraft protection, so you can better protect your existing nest egg.

Qualifying for Low Risk Credit Plans

In order to qualify for these low risk credit options, it’s important to set yourself up for success with a good credit score, since financial institutions will often reduce interest rates for higher credit scores. Here are three easy ways for you to improve your credit score:

  1. Pay off debt, especially on your credit card.
  2. Make sure all your bills are paid on time, as late payments can negatively impact your credit score.
  3. Double check your credit reports to ensure your details are accurately represented and report any discrepancies to the credit bureau responsible.

If you’re thinking of applying for a low risk credit or loan option, Citadel is here to help. We offer a variety of credit cards and loan products to fit your lifestyle. Contact us today and find out how Citadel can support your financing needs.

Whether you’re looking for a credit card or personal loan. We’ve got you covered.

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