The Curious Case of Credit Card and Millennials

24 Nov

Credit cards are quite common in modern times and most people like to use them for the benefits of better managing their expenses as well as having a lifeline to go to in case of a financial emergency. Millennials are individuals who grew up in the new millennium and saw the turn of the century. This group makes up the young adults of the working age and therefore it is all but natural to study their use of credit cards.

The Older Belief

There was a belief that the millennial generation wanted to stay away from credit cards and generally preferred debit card and cash payments. The older generation was more into using the credit cards. Several surveys show that most young adults of age less than 29 generally do not have credit cards and therefore do not use them.

It was due to the fact that the millennial generation grew up in a torrid economic time. Everyone in the early 2000s was struggling with debts. Many major financial institutions crashed during this time and the international markets plummeted creating a natural fear in the growing general who saw their adults in financial problems.

The New Information

The new information however reveals that now the millennial generation understands the use of credit cards and has shifted towards their greater use. This information includes people up to the age of 34. In fact, millennial generation seemed to not use credit cards because it is simply difficult for a young individual with no credit history to obtain them.

Once the millennial generation got enough credit history or job continuity, it was able to get its hands on the credit cards. This has therefore resulted in a much greater use of the credit cards for shopping, travelling and other purposes. The recent survey also shows that the millennial generation is now interested in performing large purchases from their credit cards such as buying a car.

Why are Millennials Interested?

The millennials are now interested in credit cards because they want to access the benefits that are on offer. They want ease in paying off large sums as well access to everyday facilities and appliances. The people from this generation are preferring cards that do not have an annual fee and offer cash-back in their reward systems.

The members of this generation are also favouring credit cards that provide greater account control and offer superior safety features. This generation is known to stop using an account if a fraud occurs on it on a permanent basis.

Building Credit History

A strong reason for using credit cards early in your life is to build a strong history by the time you are ready to make a large purchase such as that of a car. Millennial generation has now realised that it will have to build credit history in order to enjoy the benefits on offer in the new mode of digital economy.

A strong history allows credit card users to obtain cards with greater limits and purchase more expensive products with the relative ease of paying in a few months. The growing need to obtain credit is now shifting millennials into using more and more credit cards and we have seen the rise of the new leading generation who are credit card users.