fbpx
PaymentsJournal
SUBSCRIBE
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
  • Analysts Coverage
  • Truth In Data
  • Podcasts
  • Videos
  • Industry Opinions
  • COVID-19
  • News
  • Resources
No Result
View All Result
PaymentsJournal
No Result
View All Result

Millenials Are Less Likely Than Older Adults to Use Credit Cards, But Not For Lack of Access

Karen Augustine by Karen Augustine
December 28, 2018
in Analysts Coverage, Credit
0
Millenials Are Less Likely Than Older Adults to Use Credit Cards, But Not For Lack of Access
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

An article published today by a NerdWallet contributor contends that millenials’ dislike of credit cards is exaggerated and caused by a lack of access due to the Card Act of 2009 limiting adults under the age of 21 access to credit cards without proof of income or a co-signature for the card. And, in 2009 and 2010, issuers restricted access to credit cards for only consumers with the best credit, which excluded young adults who did not have a credit history.  Rather than using credit cards, young adults took personal loans, as millennials opened twice as many personal loans as Gen Z did at the same age, according to a 2017 TransUnion study, which also cited the rise of online personal loans from fintech companies growing from 2% of the U.S. personal loan market in 2009 to 24% in 2016. Since issuers have been easing lending criteria, millennials returned to using credit cards, opening nearly twice as many new credit card accounts in the first half of 2018 compared to the same period of 2013.

“The financial crisis, along with crushing student balances did leave some millennials wary of debt. But as lenders started loosening up criteria, millennials responded. The number of new credit card accounts opened by millenials jumped from 5.5 million in the first half of 2013 to 9.3 million in the same period this year, TransUnion said.”

According to the 2018 CustomerMonitor Survey Series Payments survey, millennials (53% use credit cards) are still less likely than older adults (60% of 35-64 year olds and 80% of seniors) to use general purpose credit cards, especially the 18-24 year olds (48% use credit cards), probably more to do with their fear of racking up interest charges on their credit card and insufficient credit when needed than lack of access. The youngest adults are nearly twice as likely as average to prefer using cash in stores. Young adults who use credit cards are less likely than average to pay their credit card balance in full every month so are less inclined than average to participate in credit card rewards programs. To avoid extra fees, millennials are more likely than average to set up automatic payments for their credit cards. They also use fewer credit cards than average. But, millennials are a good target for credit cards, since they are more likely than average to use premium cards with annual fees. They look for the best value in rewards whether it is from bank-issued or merchant rewards.

Overview by Karen Augustine, Manager, Primary Data Services at Mercator Advisory Group

Tags: Credit CardsMillennials
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn

    Analyst Coverage, Payments Data, and News Delivered Daily
    Sign up for the PaymentsJournal Newsletter to get exclusive insight and data from Mercator Advisory Group analysts and industry professionals.

    Must Reads

    Embedded Finance: Digital  Innovation in the Cloud

    Embedded Finance: Digital Innovation in the Cloud

    August 16, 2022
    How Payments Integration Can Revolutionize Accounts Receivable

    How Payments Integration Can Revolutionize Accounts Receivable

    August 15, 2022
    Fed Survey Finds Access to Faster Payments Important to Most Businesses

    How to Ensure Accurate, Efficient Payments Amidst Economic Uncertainty

    August 12, 2022
    eCommerce Payments Fraud money mules

    Money Mules, You Are Already Have Them – Now What?

    August 11, 2022
    Why Banks and Credit Unions Need to Adopt Real-Time Payments Now

    Why Banks and Credit Unions Need to Adopt Real-Time Payments Now

    August 10, 2022
    Making Sense of Online Identity

    Making Sense of Online Identity

    August 9, 2022
    Account Takeover Fraud Is Getting More Sophisticated. How Can We Beat It?

    How to Protect Consumers from Account Takeover Fraud

    August 8, 2022
    Technical Challenge or Business Enabler? Seizing the Opportunity of PCI DSS Compliance

    PCI DSS v4.0 Compliance: Raising Your Script Security Awareness

    August 5, 2022

    • Advertise With Us
    • About Us
    • Terms of Use
    • Privacy Policy
    • Subscribe
    ADVERTISEMENT
    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Videos
    • Industry Opinions
    • COVID-19
    • News
    • Resources

    © 2022 PaymentsJournal.com

    • Analysts Coverage
    • Truth In Data
    • Podcasts
    • Industry Opinions
    • Faster Payments
    • News
    • Jobs
    • Events
    No Result
    View All Result

      Download the complimentary eBook - The power of today’s market‑ready AI to reduce transaction fraud