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How Are Millennials Using Credit Cards?


While the allure of a credit card may have been potent for past generations, the current group of millennials using credit cards is quite small. According to recent survey statistics of more than 1,161 people 63 percent age 18 to 29 possess no plastic in their wallet and an additional 23 percent only own one credit card. So why are millennials using credit cards in the distinct minority within their age bracket?

Millennials Using Credit Cards is a Result of the Financial Times

Studies illustrate the era they came of age in does have a tremendous affect on how millennials perceive the economy and the country’s financial status. Contrary to other age brackets, millennials have experienced the results of the nation’s economic constriction for most if not all of their lives. The Great Recession has altered the entrenched patterns of buying a first residence, marrying and becoming a parent. For instance, research shows up to 36 percent of millennials were still living under their parents roof three years ago and 14.2 percent of them could not find employment, which is a considerably higher number than the national average. Clearly these young people are petrified of accruing bills they do not have the funds to pay.

Is Student Loan Debt a Problem for Millennials?

A high unemployment rate and a healthy fear of credit card debt are not the only circumstances impacting millennials using credit cards. Many financial gurus concur the burgeoning student loan debt in the United States as another influence on millennials using credit cards. Research shows more than 70 percent of college graduates three years ago left school with some type of student loan balance. The average figure hovered at around $30,000. This number was for those attending public universities while the average student loan debt being roughly $40,000 for those who went to private institutions. With visions of student loan payments into their Golden Years, millennials are simply not anxious to add to their already overwhelming financial burden.

Can Millennials Build Credit Without Plastic?

But of course. All they need to do is plunk down the cash on all their installment loans, such as a student loan debt, on time every month. In addition they should have a utility or cable bill from a residence they are responsible for. Timely payment of these bills will also create a positive credit history.





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