This might surprise you: Turns
out more and more millennials
don't have a credit card.
And while that might sound smart, Consumer Reports
says going without a credit card is a big mistake.
News 8's Martha Koloski explains in today's On Your
19 year-old Nolen Riedel is working his way through
college and is very careful with his money.
He says he doesn't want to risk getting a credit card.
I've seen some friends rack up a lot of debts that
they can't pay off and I don't want that to be me.
That might sound like a smart move, but not having
a credit card can hurt you in other ways.
Consumer Reports' money expert, Tobie Stanger, says
responsibly using a credit card and building a high
credit score is critical.
Tobie Stanger, Consumer Reports
Your credit score figures into all kinds of financial
transactions --getting a mortgage, auto insurance,
a car loan.
And you can't have the best credit score unless you
responsibly use a credit card.
You should aim to have a credit score of around 650
And credit card use accounts for about 30 percent
of that score.
To get the best credit score - you have to pay all
your credit card bills on time and in full.
To avoid credit card pitfalls, set up payment alerts
on your smartphone.
And don't keep your credit card information on file
That can make it too easy to click and buy.
Right now, Nolen uses cash or his debit card for everyday
I'm definitely going to need to start to build my
credit and maybe get a credit card soon.
And when he does, he says he'll use it responsibly
to build good credit.
Consumer Reports says there's another benefit to credit
cards: They have important fraud protections that
debit cards and other forms of payment may not.