Credit Cards Center Credit cards from our partners
Reply
Regular Contributor
Posts: 209
Registered: ‎04-29-2016

Re: Millennials and credit card use

Completely on the same page.. I don't make a lot of money, but run darn near everything through a credit card.. $30k in spending @ an average of 3% is $1000 per year in rewards.. Well worth the half hour every other Friday to go through my accounts and pay bills.

CL: $10,000 _____ $10,000 ______ $7,100 _______ $7,000 _______ $23,300 ______ $5,000 _______ $9.500
Total Credit Limit: $71,900_____________________________________________________________Gardening Since: 09/01/2016
Frequent Contributor
Posts: 296
Registered: ‎04-11-2016

Re: Millennials and credit card use

I think most millennials just aren't educated enough to take advantage of the different cards. It's not about how much you make, but how you spend it. It's free money if you PIF and only carry balances on zero apr cards.
Established Contributor
Posts: 721
Registered: ‎09-29-2014
0
Valued Contributor
Posts: 2,026
Registered: ‎06-19-2016

Re: Millennials and credit card use

I'm 28 and here's what I've noticed.

Alot of my friends use debit cards. It's just what they're used to. They never "got into credit cards" like I did. I'm surprised it took me this long to find this forum! Smiley Very Happy

I also run a very successful retail store and let me tell ya.. It's not just millennials. Most of our card transactions are DEBIT. Young, old, rich, poor we cater to almost every demographic and for some reason debit cards are very popular. The products/services we sell are also high dollar items.. Anytime I'm running debit transactions for thousands of dollars I'm just thinking of all the rewards people are missing out on!
My Cards:
American Express PRG-American Express BCE-Chase United Mileage Explorer-Chase Amazon-BoFA 321
Valued Contributor
Posts: 1,054
Registered: ‎02-23-2015

Re: Millennials and credit card use


Berk wrote:

Here:

 

http://www.bankrate.com/finance/credit-cards/more-millennials-say-no-to-credit-cards-1.aspx

 

Here:

 

http://www.forbes.com/sites/robertharrow/2016/09/13/the-complicated-truth-about-millennials-and-cred...

 

And here:

 

http://www.nytimes.com/2016/08/15/business/dealbook/why-millennials-are-in-no-hurry-to-take-on-debt....

 

 


And the ironic thing about it is that they turn their backs on credit cards and car loans but when they go to apply for a mortgage they find out they have a lack of a credit history and throw a tantrum.

Gardening until September 2018
Next app: Mortgage in September 2018
Established Contributor
Posts: 721
Registered: ‎09-29-2014
0

Re: Millennials and credit card use


Discover2016 wrote:

Berk wrote:

Here:

 

http://www.bankrate.com/finance/credit-cards/more-millennials-say-no-to-credit-cards-1.aspx

 

Here:

 

http://www.forbes.com/sites/robertharrow/2016/09/13/the-complicated-truth-about-millennials-and-cred...

 

And here:

 

http://www.nytimes.com/2016/08/15/business/dealbook/why-millennials-are-in-no-hurry-to-take-on-debt....

 

 


And the ironic thing about it is that they turn their backs on credit cards and car loans but when they go to apply for a mortgage they find out they have a lack of a credit history and throw a tantrum.


Bingo!

Over $178,000 in credit across 12 cards.

FICO ranges from 793 -822 as of 03/26/2017
Valued Contributor
Posts: 2,026
Registered: ‎06-19-2016
0

Re: Millennials and credit card use

This thread also proves why Amex is where they're at. Millennials just don't care about that "Amex appearance" so they need to offer products that are more than just based on prestige.
My Cards:
American Express PRG-American Express BCE-Chase United Mileage Explorer-Chase Amazon-BoFA 321
Established Contributor
Posts: 721
Registered: ‎09-29-2014
0

Re: Millennials and credit card use


12velectronics wrote:
This thread also proves why Amex is where they're at. Millennials just don't care about that "Amex appearance" so they need to offer products that are more than just based on prestige.

Outside of the myFICO community, I don't think that there are a whole lot of people who think that Amex only offers cards based on prestige. What does "based on prestige" even mean?

Over $178,000 in credit across 12 cards.

FICO ranges from 793 -822 as of 03/26/2017
Established Contributor
Posts: 747
Registered: ‎11-15-2014
0

Re: Millennials and credit card use


Sharingan wrote:

As for the OP's second consideration, there are other banks with charge cards; however, they have AFs as well from what I can see. The challenge would be combining a competitive reward structure with $0 AF, as there wouldn't be a steady flow of interest for the bank to defray some of the rewards disbursements. Such a charge card may work well for customers but would probably perform quite poorly for the bank. The American Express Zync card (which I still have to this day) was AmEx's attempt to compete in this segment and it fell flat. The AF started as low as $25 and increased as the user added more rewards to the card in the form of "packs." I doubt you will see AmEx introducing a no-AF charge card anytime soon.


I think AmEx could do a flat 1.5x cashback/MR charge card without charging an AF considering the higher swipe fees they get. In fact, I'd go as far as to say that nearly every credit card reward program is likely funded almost completely through swipe fees (which is why they've been tending to upgrade cards to Visa Signature/WMC/WEMC lately).

Valued Contributor
Posts: 2,071
Registered: ‎02-14-2016

Re: Millennials and credit card use

Early 30s here too. I never wanted to use a credit card before learning about credit here over the last 1.5 years because my only example of credit card use was my mom who has been perpetually carrying 10-20k credit card debt for most of my life. She seems to view credit cards as a bridge between income and desired lifestyle which was a huge turn off to me right from the start.

Now that i know better, i don't even carry a debit card anymore and use only an atm card for the very rare occasion that i need cash for something. Since finding this forum and another popular one almost 2 years ago I've been maintaining mid to high 700 FICOs, single digit monthly utilization, halved my car insurance premium, and got a 1.9% apr on my latest car loan. The previous car loan about 5 years ago was just north of 6% so that tells you the progress I've made mostly with responsible credit card use.

I think the biggest holdup for this generation in regards to credit cards is twofold. Many like me had poor examples in our parents, and i know many who as others have stated have poor money management and so have no savings, live paycheck to paycheck etc and thus rightly are afraid of the ability to rack up debt that a credit card provides.

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.