There’s no mystery here: Millennials are suffering from bad credit left and right. But why? Why specifically Millennials? What is it that they are doing that is getting them into so much trouble?

They do not teach you in school the art of budgeting yourself or the ins and outs of how to build good credit. A lot of the time, Millennials are learning by trial and error – more often than not – they are erring.

Here are the main reasons why Millennials are ruining their credit:

Unpaid Bills Are BAD

Millennials are known for renting and relocating at a high frequency. This may cause problems if bills are accidently delivered to an old address or get lost in the shuffle of mail from location to location. To prevent these bills from going to collections, make sure to schedule a change of address a bit before you move AND have your mail forwarded to your new address. Unpaid bills like these will do a lot of damage to your credit score.

Nixing A Budget

Making a budget may sound tedious and boring, but it can save you a great deal of money. By tracking your spending, you will notice where and when you spend money and if there are any patterns there! You should allot yourself a certain amount towards your necessities every month (rent, groceries, travel, bills, etc.) and then decide what you will do with the rest of your funds. You may choose to open a savings account where you deposit a certain amount each month. Without a budget, you can easily over spend and end up with little to no funds at the end of the month.

Misusing Credit

Another way Millennials are ruining their credit is by not building credit properly. Most fall into two groups: those that put off getting a credit card for too long and those that get too many credit cards and misuse them. Both are not ideal. When you put off building your credit till later, you still have to build that credit. Therefore, the earlier you can start, the better. When you apply and use as many credit cards as you can, transferring amounts from one card to another, credit agencies see that activity – they see when you open and close accounts – and that does not reflect well on credit.