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Millennials aren't utilizing CC

Frequent Contributor

Millennials aren't utilizing CC

Millennials are ditching credit cards, and it's threatening the entire industry

Millennials appear to have an aversion to borrowing, with just one in three carrying credit cards, compared to the majority of older people.

Millennials have been accused of disrupting many industries, from newspapers to brick-and-mortar stores. Credit cards appear to be next in line.

Just one out of three millennials carries plastic, according to a Bankrate.com survey, compared to the majority of older Americans. In addition, a Fed survey found the 18 to 24 demographic preferred to pay cash more than others. And if they do carry a card, it tends to be of the prepaid or debit variety, TD Bank found.

 

http://business.financialpost.com/personal-finance/debt/millennials-are-ditching-credit-cards-and-it...

 

Interesting read. OK, millennials: True??


Message 1 of 34
33 REPLIES
Frequent Contributor

Re: Millennials aren't utilizing CC

I haven’t used a debit card in 3 years, and I can count the number of times I’ve paid with cash in that same period on one hand. However, I am more than likely an outlier. Having said that, the majority of my friends on campus do carry a credit card though I don’t know how many are in their name.


Message 2 of 34
Valued Contributor

Re: Millennials aren't utilizing CC

I'm only close with a few millenials and their credit is trashed from crippling unpaid student loans. 

 

I hear lots about this generation having this issue . . wonder if that's a big contributor? Even the ones with loans in good standing may feel so committed to debt that they don't want any more.

 

NOTE: I am sure there are responsible, financially savvy millennials out there and have seen many on these boards. This example was just a few folks that I know.

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Message 3 of 34
Established Contributor

Re: Millennials aren't utilizing CC

Welp, I'm a millenial. Most people my age use CC's. I think they need to bump the millenial group to 1988-1990. I'm 1984 and I feel like most people I talk to within 4-5 years older and younger really have similar spending habits and education. Although, it could very well be our age as well. I hardly ever use a debit card becaue my thought process is at very minimum this purchase could have 1-2% CB benefits and usually more. And don't have debit linked to any online source.

 


Message 4 of 34
Valued Contributor

Re: Millennials aren't utilizing CC

The awareness of debt and the possible consequences is increasing as we find more educational sites such as this. Yes, credit cards are not bad at all, is how people manage them. I think the thought of falling into debt is what's driving this, specially for someone with student loan debt or other debt. If you don't have the money in the bank, don't buy it with a credit card.



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Message 5 of 34
Regular Contributor

Re: Millennials aren't utilizing CC


@corpcrmgrwrote:

Millennials are ditching credit cards, and it's threatening the entire industry

Millennials appear to have an aversion to borrowing, with just one in three carrying credit cards, compared to the majority of older people.

Millennials have been accused of disrupting many industries, from newspapers to brick-and-mortar stores. Credit cards appear to be next in line.

Just one out of three millennials carries plastic, according to a Bankrate.com survey, compared to the majority of older Americans. In addition, a Fed survey found the 18 to 24 demographic preferred to pay cash more than others. And if they do carry a card, it tends to be of the prepaid or debit variety, TD Bank found.

 

http://business.financialpost.com/personal-finance/debt/millennials-are-ditching-credit-cards-and-it...

 

Interesting read. OK, millennials: True??


Think there’s not enough credit education going on in schools these days. Many don’t understand free rewards and grace periods to never pay interest. They have no problem swiping a debit card. So I think it’s more ignorance. They are also less likey to buy a house and more prefer traveling experiences with their money,



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Message 6 of 34
Established Member

Re: Millennials aren't utilizing CC

I think it goes hand in hand with more millennials living at home with their parents and being AUs. That’s half the kids in my neighborhood. They spend their parents money.
Message 7 of 34
Frequent Contributor

Re: Millennials aren't utilizing CC

I think there are two camps of millennials. Those that you described and many of those that I interact with that have earned advanced degrees. Most have initials after their names: CPA, VP, MD, CPT, PhD, CFP, JD, MSN, CFO, COO... All own their own home. I believe it is a splintered group.


Message 8 of 34
Established Contributor

Re: Millennials aren't utilizing CC

I can think of one young lady in this group who uses cash and credit cards...

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Message 9 of 34
Valued Member

Re: Millennials aren't utilizing CC

As a millenial (1994) I have to say i was raised on old school ideals, if you cant pay it with cash dont buy it at all. I had an aversion to credit cards and never intended to get them. Then when i was 20 i learned just how important credit really is when my truck broke down and couldnt afford to fix it or had the credit to replace it.  I have been on a long hard journey ever since then to build my credit to the best possible number i can get so that never happens again. Now that i have learned so much about credit i will never go back, as ultimatley if you play your cards right you can save alot of money.

 

As far as the people around me, its a mixed bag. one of my coworkers dosent use credit cards at all but uses cash with occasional debit, one uses thier AU card from her parents, and one is a mixed bag of CC and debit.

 

and as far as millenials threatening the industry, its more of them defaulting on CC debt then not using CCs

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Message 10 of 34