Millennials may be more savvy than other generations on social media, but they have a lot to learn when it comes to credit cards.
Nearly half of millennials, people ages 18 to 34, have recently applied for a credit card because of an advertisement or a promotion, according to a new survey from NerdWallet, which provides online credit-card comparison tools.
The problem with this, NerdWallet said, is that many millennials do not have the required financial qualifications to obtain the credit cards they apply for. That leads to them be denied for the cards and hurts their credit score. That may help explain why more than half of Generation Y has a reported FICO score below 670. The average U.S. consumer has a score of 695.
To avoid these hits to their credit, millennials should apply sparingly for credit cards and wait the appropriate amount of time between applications, said Sean McQuay, a credit cards associate at NerdWallet.
"A good rule of thumb is to wait six months to a year between card applications," McQuay said.