Millennials are Playing a Whole New Card Game

Did you know, according to a poll by Bankrate.com, only about 36% of Americans aged between 16 and 36 have a plastic companion in their wallet? You won’t believe it, but when you take a peek at the older demographic, say those over the age of 50, this rate nearly doubles! Yes, you heard it right. Double. It seems these young ones, better known as Millennials, are reshuffling the deck when it comes to credit cards.

The Millennial Dilemma: To Swipe or Not to Swipe?

Now, let me let you in on why more and more Millennials are giving the cold shoulder to the glorious plastic. Remember the economic Big Bad Wolf that huffed and puffed and blew down the economy a few years ago? Well, most Millennials witnessed that firsthand. They saw their families, and other older folks they knew, suffering due to the nasty side effects of accumulated debt.

Bankrate’s analyst, Mike Cetera, who specializes in personal loans and credit, explains that while Millennials fully acknowledge the need to build a robust credit history, the thought of handling that sort of responsibility seems daunting. He says, “I’ve heard from many that they understand the importance of a sturdy credit score, but it’s just not on their radar right now.” Does it sound like an overload to you? Imagine how they must feel!

Debt-on-Debt: A Millennial’s Nightmare

Imagine you have a mountain of debt, partly from credit card dues and partly from student loans, and someone asks you to open another credit card account! Frightening scene, isn’t it? That’s exactly what is making Millennials break out in cold sweats! Cetera points out, “The explosion of student loan debt certainly isn’t easing matters for them. When you’re already juggling a heap of student loan balances, adding more credit card debt to the equation feels like climbing Everest!”

What the Future Holds: A Credit Card-less World?

While traditionally, people tend to hop onto the credit card bandwagon as they age, Cetera believes that this might not be the story for Millennials. These young adults are stepping off the beaten path. They don’t seem too interested in those clichéd milestones like owning two cars or the idyllic house with the white picket fence. So, who’s to say they will follow the credit card trend?

The Knowledge Gap Strikes Again!

And there’s one more key factor that could be swaying the Millennials away from credit cards – their limited understanding of credit scores, as a recent Consumer Federation of America survey suggests. The Millennial generation just doesn’t have the kind of knowledge about credit scores that their Gen-Xer counterparts do.

The Struggle for Financial Independence Continues

Now don’t go thinking that their aversion to credit cards means they’ve mastered the money game. Far from it! According to a recent survey by GoBankRates, about two-thirds of these crafty Millennials admitted to hanging out with friends even when their wallets moaned in protest. And surprise surprise, around one-third even confessed to hushing those groans by pulling out their trusty – you guessed it – credit cards!