A new series titled "Foundation Forward," presented by the financial education platform "Earn Your Leisure" in partnership with Chase Freedom Rise, is tackling the credit challenges facing the next generation. Hosted by financial educators Troy Millings and Rashad Bilal, the first event spotlights the story of Margaret Conti, a 19-year-old dance student in New York City, to explore the pervasive issue of credit denial among Gen Z. Margaret’s ambition is to join the prestigious Martha Graham Dance Company, a modern dance company founded by the visionary Martha Graham. Her journey, however, has faced financial roadblocks; she was denied a credit card twice before starting college, an experience that places her among the 65% of Gen Z applicants who have been denied some form of credit—the highest rate of any generation. One denial provided no reason, while the other cited a lack of credit history, trapping her in a frustrating cycle where she couldn't build the history she needed to get approved. Margaret admitted that most of her financial information comes from social media, a source the hosts identify as rife with misinformation, underscoring the need for the trustworthy guidance their show aims to provide.
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Chase Freedom Rise Presents Foundation Forward
The financial pressures Margaret faces are intertwined with her artistic pursuits in a notoriously expensive city. Her demanding dance schedule at school runs from 8 a.m. to 8 p.m., making it nearly impossible to hold a steady job during the week. She is acutely aware that stable work is not guaranteed in her field, a reality she finds "definitely scary". Despite having a backup degree in history, Margaret is committed to dedicating at least five years to her dance career, willing to take on "as many odd jobs as possible" and as many roommates as necessary to succeed. Her primary motivation for building credit is practical: the ability to secure an apartment and get approved for larger purchases after graduation is a significant worry. The feeling of being denied credit left her feeling lost, with no clear options on how to move forward. To provide a dose of inspiration, the episode features Bisby, a singer-songwriter who built a successful career without a traditional record label. Bisby shared his own story of being denied a credit card due to a lack of history, framing the process of building a financial foundation as "a marathon, not a sprint". He described overcoming early creative struggles—making "really bad music" and facing bullying from peers—with an unwavering self-confidence that eventually led to a song reaching 100,000 plays, allowing him to quit his boba job and pursue music full-time.
To arm Margaret with the confidence she needed, Millings and Bilal broke down the "ABCs" of how credit works, demystifying the components of a credit score. They explained that the most critical factor is payment history, which accounts for 35% of the score. They advised her to pay bills not just by the due date, but before the credit institution's reporting date to demonstrate trustworthiness. The second largest component, at 30%, is credit utilization. While the common recommendation is to keep usage below 30% of the available credit, the hosts suggested aiming for 10% to appear even more creditworthy to lenders. The length of credit history, which makes up another 15%, is where Margaret’s status as an authorized user on a parent's card becomes a powerful tool. This allows her to inherit the long, positive history of that account, significantly increasing the average age of her own credit profile. Finally, they touched on the importance of having a mix of credit types, which signals to lenders that multiple institutions find an individual trustworthy. For those starting out, they noted that having a pre-existing relationship with a bank, such as a Chase checking account, can improve the chances of being approved for a starter credit card. They advised Margaret that while her prior denials likely registered as derogatory marks, her focus should now be on using her authorized user card to build a positive history for six to eight months before applying again. This simple, clear guidance provided Margaret with a tangible plan, leaving her feeling confident and better equipped to navigate her financial future.
