Previous reports have shown that younger generations—Millennials specifically—are becoming less likely to participate in traditional forms of banking and obtaining credit lines. Whether or not financial institutions are opting to expand their offerings to customers, it is important to be prepared for this trend. Should consumers eventually decide to obtain a credit card or loan, banks want to ensure that they are making sound investments.
Having up-to-date credit application software in place will help financial institutions choose creditworthy borrowers. Even if an applicant has little credit history, there could be other factors to look at to determine how he or she will handle a loan.
According to a recent Denver Post article though, more individuals in their 20s and 30s are becoming "credit shy." Citing data from a Pew study, the news source said that in 2010, only 39 percent of younger households (those under 35) carried a credit-card balance. In 2007, that number was 48 percent.
The same Pew report showed that younger generations are decreasing their debt by having less loans, such as car or home payments.
Todd Huettner, president of a Denver-based residential and commercial real estate firm, told the news source that when individuals choose to not use their credit card often, it will not necessarily harm his or her credit score, or even prevent the customer from receiving a loan. However, that practice could hinder a credit score from being raised.
"Revolving debt helps you and hurts you the most," he said. "That's why it's the hardest to manage. It requires the most responsibility."
With current credit application processing, banks can be sure to find borrowers who can manage their finances, regardless of how long they have had lines of available credit.
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Previous reports have shown that younger generations—Millennials specifically—are becoming less likely to participate in traditional forms of banking and obtaining credit lines. Whether or not financial institutions are opting to expand their offerings to customers, it is important to be prepared for this trend. Should consumers eventually decide to obtain a credit card or loan, banks want to ensure that they are making sound investments.
Having up-to-date credit application software in place will help financial institutions choose creditworthy borrowers. Even if an applicant has little credit history, there could be other factors to look at to determine how he or she will handle a loan.
According to a recent Denver Post article though, more individuals in their 20s and 30s are becoming "credit shy." Citing data from a Pew study, the news source said that in 2010, only 39 percent of younger households (those under 35) carried a credit-card balance. In 2007, that number was 48 percent.
The same Pew report showed that younger generations are decreasing their debt by having less loans, such as car or home payments.
Todd Huettner, president of a Denver-based residential and commercial real estate firm, told the news source that when individuals choose to not use their credit card often, it will not necessarily harm his or her credit score, or even prevent the customer from receiving a loan. However, that practice could hinder a credit score from being raised.
"Revolving debt helps you and hurts you the most," he said. "That's why it's the hardest to manage. It requires the most responsibility."
With current credit application processing, banks can be sure to find borrowers who can manage their finances, regardless of how long they have had lines of available credit.
[:es]Previous reports have shown that younger generations—Millennials specifically—are becoming less likely to participate in traditional forms of banking and obtaining credit lines. Whether or not financial institutions are opting to expand their offerings to customers, it is important to be prepared for this trend. Should consumers eventually decide to obtain a credit card or loan, banks want to ensure that they are making sound investments.
Having up-to-date credit application software in place will help financial institutions choose creditworthy borrowers. Even if an applicant has little credit history, there could be other factors to look at to determine how he or she will handle a loan.
According to a recent Denver Post article though, more individuals in their 20s and 30s are becoming "credit shy." Citing data from a Pew study, the news source said that in 2010, only 39 percent of younger households (those under 35) carried a credit-card balance. In 2007, that number was 48 percent.
The same Pew report showed that younger generations are decreasing their debt by having less loans, such as car or home payments.
Todd Huettner, president of a Denver-based residential and commercial real estate firm, told the news source that when individuals choose to not use their credit card often, it will not necessarily harm his or her credit score, or even prevent the customer from receiving a loan. However, that practice could hinder a credit score from being raised.
"Revolving debt helps you and hurts you the most," he said. "That's why it's the hardest to manage. It requires the most responsibility."
With current credit application processing, banks can be sure to find borrowers who can manage their finances, regardless of how long they have had lines of available credit.
[:it]Previous reports have shown that younger generations—Millennials specifically—are becoming less likely to participate in traditional forms of banking and obtaining credit lines. Whether or not financial institutions are opting to expand their offerings to customers, it is important to be prepared for this trend. Should consumers eventually decide to obtain a credit card or loan, banks want to ensure that they are making sound investments.
Having up-to-date credit application software in place will help financial institutions choose creditworthy borrowers. Even if an applicant has little credit history, there could be other factors to look at to determine how he or she will handle a loan.
According to a recent Denver Post article though, more individuals in their 20s and 30s are becoming "credit shy." Citing data from a Pew study, the news source said that in 2010, only 39 percent of younger households (those under 35) carried a credit-card balance. In 2007, that number was 48 percent.
The same Pew report showed that younger generations are decreasing their debt by having less loans, such as car or home payments.
Todd Huettner, president of a Denver-based residential and commercial real estate firm, told the news source that when individuals choose to not use their credit card often, it will not necessarily harm his or her credit score, or even prevent the customer from receiving a loan. However, that practice could hinder a credit score from being raised.
"Revolving debt helps you and hurts you the most," he said. "That's why it's the hardest to manage. It requires the most responsibility."
With current credit application processing, banks can be sure to find borrowers who can manage their finances, regardless of how long they have had lines of available credit.
[:tr]Previous reports have shown that younger generations—Millennials specifically—are becoming less likely to participate in traditional forms of banking and obtaining credit lines. Whether or not financial institutions are opting to expand their offerings to customers, it is important to be prepared for this trend. Should consumers eventually decide to obtain a credit card or loan, banks want to ensure that they are making sound investments.
Having up-to-date credit application software in place will help financial institutions choose creditworthy borrowers. Even if an applicant has little credit history, there could be other factors to look at to determine how he or she will handle a loan.
According to a recent Denver Post article though, more individuals in their 20s and 30s are becoming "credit shy." Citing data from a Pew study, the news source said that in 2010, only 39 percent of younger households (those under 35) carried a credit-card balance. In 2007, that number was 48 percent.
The same Pew report showed that younger generations are decreasing their debt by having less loans, such as car or home payments.
Todd Huettner, president of a Denver-based residential and commercial real estate firm, told the news source that when individuals choose to not use their credit card often, it will not necessarily harm his or her credit score, or even prev
ent the customer from receiving a loan. However, that practice could hinder a credit score from being raised.
"Revolving debt helps you and hurts you the most," he said. "That's why it's the hardest to manage. It requires the most responsibility."
With current credit application processing, banks can be sure to find borrowers who can manage their finances, regardless of how long they have had lines of available credit.
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