Wary Millennials Steer Clear of Credit Cards

Millennials may avoid credit cards for fear of debt, but without them they may not be able to gain the credit they need to establish good financial standing in the future.

Wary Millennials Steer Clear of Credit Cards

Millennials know just how easy it is to get into debt – a huge percentage of them are saddled with student loans already – so it’s no wonder that they are wary of using and misusing credit cards. 06:28:16 pt 1

But student loans aren’t the only thing keeping Millennials from getting a credit card. In fact, according to Bankrate.com, only 33% of adults between the ages of 18 and 29 have a credit card. When asked why responders cited both personal previous financial problems and seeing their close friends and family struggle with financial problems during the recession.

After seeing the mistakes their parents and other family members made, Millennials are extra careful to not repeat them.

06:28:16 pt 2

Many Millennials equate credit cards with debt and underestimate how credit cards can actually help them build credit if they use them the right way. Without a strong credit history, Millennials may find it difficult to get approved for car loans or a mortgage.

Of course, it’s wise to try to avoid debt, but once Millennials start making those large purchases and moving into a new stage of life, they might realize that credit cards can actually be a useful tool.

How do you feel about credit cards? Join the conversation on Twitter with @WhatTheGen or @JasonDorsey. And don’t forget to add your #generation!

Generations Millennials / Gen Y Research Findings

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