Question of the Day: What Percentage of 18-29 Year-Olds Have Credit Cards?
This study by Bankrate surprised me as it showed 63% of millenials don’t have credit cards. Two questions for students:
1. Why do you think almost 2/3 of millenials don’t have a credit card? This account from a millenial (Money) provides some of the reasons why:
- 2009 law that makes it difficult to get card before age of 21
- Don’t trust banks
- Student loan debt
- Seen the damage caused by excessive credit card debt
- Don’t know what we are missing
2. What are implications of not having credit card? It may be difficult to build a credit history so when you are ready to borrow to buy a car or get a mortgage you may be turned down or pay higher interest rates. I expect that credit bureaus are hard at work to establish other measures to help lenders determine credit risk since this is an issue with a majority of millenials.
About the Author
Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.