How Millennials Became Spooked by Credit Cards
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Re: How Millennials Became Spooked by Credit Cards
#2Huh, that's weird. I fall into the age bracket mentioned in the article, but use a credit card for nearly every single purchase for 1) the fraud protection benefits and 2) points. With the anecdotal group of people I know most people are fine using CCs.
On the other hand, I pay off the statement in full every month, and therefore never have revolving debt that extends beyond 30 days. The article wasn't clear whether or not such credit would have counted in their analysis or not.
Re: How Millennials Became Spooked by Credit Cards
#3It still boggles my mind how prevalent credit cards are in the U.S. and how almost non-existent they are elsewhere, in particular Europe and Japan where debit cards are used. They don't call them debit cards, but rather cashless payment or what have you. And the merchant fees for these cards are far, far lower than credit cards which makes it even more baffling to me.
ADD: "Without a substantial credit history, it is much harder to take out a home mortgage, for example." Why is this? It's not true in other countries where credit cards aren't used anywhere as much.
Re: How Millennials Became Spooked by Credit Cards
#4Boohoo. Millennials don't want to be enslaved by debt and the corporations that profit from it. I've told my kids since they could understand that credit cards are evil and are to be avoided like the plague unless you pay them off religiously every month. I'm glad to see they're listening.
Re: How Millennials Became Spooked by Credit Cards
#5This is interesting and I am glad less people are using credit cards. It's really not a good idea for the majority of people in my experience.
I got mine when I was 20 and I've never paid it late or gone over my limit. Most of the time I coordinate my payments with the day I get my direct deposit (I've tried automatic payments, but too paranoid that they might not work!). Discover gives me pretty good Amazon cash back too, so every few months I get enough points to get something small for free or very cheap.
It wasn't until much later that I realized not everyone is like me and most of my peers had a lot of debt accrued over the years. They're definitely dangerous.
Re: How Millennials Became Spooked by Credit Cards
#6What's really scary is the fact that many of these individuals don't consider the benefits and rewards of using a credit card -- free flights, cash-back, insurance and extended protection, and best of all it's not your money. You get to hold on to your cash for a month's worth of interest and you get fraud protection.
Credit cards are tool and, just like most tools, should be used with proper awareness and thought-process. None of the examples in the given article are fallouts of "using credit cards", but having runaway debt in the first place.
This article really just emphasizes the fact that we are living in an age of complete lack of personal responsibility and self-control, where you can blame an institution for your inability to spend.
Re: How Millennials Became Spooked by Credit Cards
#7This is something I fall squarely into. I've avoided debt like the plague, preferring to live a few years behind the tech curve in electronics and using older cars and such. I do use a debit card a decent amount however, for better and worse. I'd much rather operate within my means, than spend my entire life chasing something I can't actually afford.
edit:
I will be looking into getting a credit card decently soon so I can build credit for things like a house, but at 22, I can say I'm glad I don't have to worry about that hanging over my head in the future.
Re: How Millennials Became Spooked by Credit Cards
#8The use of credit history and score to determine worthiness in all sorts of purchases is a horrible construction that must be destroyed. I got a credit card for no reason other than to build score; I've never spent money I didn't have in my life (which seems responsible to me!) but I still have to go through this silly rigmarole of purchasing and then paying off to prove to future agencies that I'm responsible.
Re: How Millennials Became Spooked by Credit Cards
#9The article mentions several times that student loans are putting a lot of people off more debt. Then it says they'll have no credit history when it comes time to buy a house or car.
What about all the student loan payments they're making? That's certainly a credit history, esp. if you miss a few.
Re: How Millennials Became Spooked by Credit Cards
#10[deleted]