And understand they need credit to buy them, even if it might mean fewer lattes
Millennials have been called lazy, entitled, and whiny. But now, they’re being called potential homebuyers.
At least that’s what new research from Chase Bank says. The survey found that 33 percent of millennials surveyed say they’re looking to improve their credit so they can buy a home in the next four to five years.
“Americans — especially millennials — are planning for their next major milestone,” says Farnoosh Torabi, a finance expert with Chase. “They’re assessing where they stand today and working to improve their tomorrow, whether that means buying a car or home, co-signing on a lease, walking down the aisle or applying for a new job.”
Generation Y is starting to clue in. Credit is important — and they’re keeping an eye on their scores.
Millennials are more likely than any other generation to check their credit. Close to 40 percent of them check their scores every month. Meanwhile, roughly 30 percent of Generation X and baby boomers are checking their credit monthly at 31 percent and 28 percent respectively.
This follows a nationwide trend showing that 67 percent of Americans know their current credit score, up from 58 percent in 2016. And close to 80 percent say their credit score is a large factor for the type of house they will buy.
On top of that, more than 60 percent of millennials say they mean business and have a plan of action to improve their credit. It might be just one shot of espresso instead of a full latte or taking a pass on Thursday’s happy hour, but it’s a start.
Millennials find their footing
It looks like they’ve reached an age of enlightenment when it comes to financial matters because it’s not just credit they’ve got a handle on.
Parents can breathe easier as millennials are starting to pay their own bills. Despite the fact that they’re staying at home longer, people between 18 and 29 feel they should be taking over their own bills at an earlier age.
And more and more millennials are starting to save for their 401(k) plans, says Wells Fargo research. While baby boomers are still the biggest contributors, those looking to be millennial home buyers have started leading growth over the past five years.
Those saving habits are also showing at a young age among millennials. Most are out saving the older generations and research from Revere Bank says that if they were offered a pile of money, most would either use it to pay off bills or save it.
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Article last modified on August 28, 2017. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Millennials Want to Buy Homes - AMP.