Many experts agree consumers in their early 20s are at the ideal ages to begin using credit cards. Credit cards are a great first step toward establishing a good credit history. Additionally, they also offer rewards and short-term financing.
Even so, some recent reports indicate a portion of Millennials are choosing debit and prepaid cards over credit cards. According to MyBankTracker.com, 49 percent of Millennials don’t even own a credit card. In comparison, 29 percent of consumers in other age brackets go without credit cards.
Millennials’ limited interest in credit cards can be attributed to a number of factors. First, Millennials were essentially the first generation to grow up with debit cards. Second, the CARD Act of 2009 makes it more difficult for consumers under the age of 21 to obtain credit cards. Third, many Millennials have significant amounts of student loan debt.
Encouragingly, industry experts also agree (and statistics support) Millennials will likely choose credit cards more often as their careers become better established and they become more confident in their abilities to manage their finances.continue reading »