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The average millennial has $27,251 in non-mortgage consumer debt—here's how they compare to other generations

Millennials are the generation with the fastest growing debt. Here's a look at what the average millennial is borrowing.

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Millennials are the generation with the fastest growing debt load, which isn't surprising when you consider this cohort is increasingly having children, buying homes and continuing to pay off their student loans. According to the Experian 2020 State of Credit report, the average millennial consumer has about $27,251 in non-mortgage debt, and millennial homeowners have an average mortgage balance of $232,372.

Experian reports that the $27,251 in non-mortgage consumer debt includes any revolving credit or installment loans, including credit cards, student loans, car loans and/or personal loans.

While Millennials' average credit card balance is $4,651, most have their payment plans under control. Just 2.7% of millennials have fallen behind on their payments for 30 to 59 days, and even fewer (1.5%) are 60 to 89 days behind. The delinquency rate for 90- to 180-days-past-due accounts is 4.4%.

Here's a full break down of Experian's 2020 findings.

2020 State of Credit Findings

2020 findings by generation Gen Z (ages 24 and younger) Millennials / Gen Y (ages 25 to 40) Gen X (ages 41 to 56) Boomers (ages 57 to 74) Silent (ages 75 and above)
Average VantageScore® 654658676716729
Average number of credit cards1.642.663.33.452.78
Average credit card balance$2197$4651$7718$6747$3988
Average revolving utilization rate30%30%32%24%13%
Average number of retail credit cards1.642.12.592.632.21
Average retail credit card balance$1124$1871$2353$2100$1558
Average non-mortgage debt$10942$27251$32878$25812$12869
Average mortgage debt$172561$232372$245127$191650$159517
Average 30–59 days past due delinquency rates1.60%2.70%3.30%2.20%1.20%
Average 60–89 days past due delinquency rates1.00%1.50%1.80%1.20%0.70%
Average 90–180 days past due delinquency rates2.50%4.40%5.30%3.20%1.90%

How millennials can improve their credit scores

The average millennial's VantageScore® is 658. While positive credit history is one factor in determining your credit score, it's not the only one, so millennials can't exactly blame their mediocre scores on their youth.

With a score of 658, millennials sit right on the cusp of having a prime credit score, which can help improve their chances of getting approved for the best financial products and interest rates. The difference between having a 658 credit score and one higher than 660 is significant and well worth working toward.

The first step to improving your score is to know where you stand. It's easy to pull your free credit report and sign up for a free credit monitoring service.

CreditWise® from Capital One is a free credit monitoring service that delivers account holders their weekly updated VantageScore in addition to offering dark web scanning and social security number tracking.

CreditWise® from Capital One

CreditWise® from Capital One
Information about CreditWise has been collected independently by CNBC and has not been reviewed or provided by the company prior to publication.
  • Cost

    Free

  • Credit bureaus monitored

    TransUnion and Experian

  • Credit scoring model used

    VantageScore

  • Dark web scan

    Yes

  • Identity insurance

    No

See our methodology, terms apply.

We also recommend Experian free credit monitoring, which uses the popular FICO scoring model and shows you all of your credit cards and loans, plus their balances, in one place. This makes it easy to track your on-time payments and keep an eye on your credit usage so that it stays at a manageable level.

Be sure to check for errors on your credit reports while you're at it: 26% of participants in an FTC study found at least one error on their reports that could make them appear riskier to lenders.

Experian Free Credit Monitoring

Experian Free Credit Monitoring
On Experian's secure site
  • Cost

    Free

  • Credit bureaus monitored

    Experian

  • Credit scoring model used

    FICO

  • Dark web scan

    Yes, one-time only

  • Identity insurance

    No

Terms apply.

Once you know where you stand, there are five easy steps you can take to improve and/or maintain your score.

1. Make on-time payments

Paying your bills on time is the most important thing you can do to help raise your score. Both FICO and VantageScore, which are two of the main credit card scoring models, view payment history as the most influential factor. Even if you can't pay the full balance, always pay the minimum at least.

2. Set up autopay

If you struggle to remember to pay your bills on time each month, link your credit card to your checking account and approve a monthly autodraft to pay your bills. After a few months of regular on-time payments, you'll be surprised at how much autopay boosts and then protects your score.

Don't miss: 6 tips for choosing the best checking account

3. Limit new accounts

FICO and VantageScore look at the number of credit inquiries you have. Every time you apply for a new credit card or loan, or even ask for a credit limit increase, you could add another inquiry to your report. If you want a new card, but you're not sure you'll qualify, you can submit a pre-qualification form online, which shouldn't impact your score.

4. Keep an eye on your credit utilization rate

Your credit utilization rate (CUR) is the total amount of credit you are using compared to your available limit. Experts recommend you try to keep this under 10% — so if you have a $10,000 credit limit, avoid carrying more than $1,000 balance at any one time. Lowering your CUR should lead to a boost in your score.

5. Get credit for paying other bills

Get credit on your credit report for paying your utility bills, streaming subscriptions and cell phone payments on time by signing up for Experian Boost™. The way Experian Boost works is simple: Just connect your bank account(s) to your Experian Boost account. It will identify your utility, telecom and streaming service payment history — that includes Netflix®, HBO Max™ and others. Verify the data and confirm you want it added to your Experian credit file, then you'll get an updated FICO score delivered to you in real time. (This service will only help you improve your FICO score.)

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Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the CNBC Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.