Millennials aren’t fancying credit cards at all!

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Even though they’re always open to trying new technologies, it looks like Millennials don’t use credit cards as often as their parents or grandparents do. And this is definitely surprising, since it’s basically the easiest method of making payments.

According to a survey conducted in 2016, less than a third of this specific category have a credit card, while more than half of the people questioned, with the age between 30 and 49 owe one. Even more, nearly 70% of people over 65-years-old have a card as well!

They are afraid of racking up debt, of course

However, we do know the reason why they’re keeping away from credit cards: the fear of debt.

“Millennials have been stigmatized by debt,” said Douglas Boneparth, president of Bone Fide Wealth in New York and co-author of The Millennial Money Fix. “They’ve witnessed firsthand the effects that mishandling debt can bring.”

Besides this, a lot of them are seeing their families or friends hardly dealing with debt, ever since the financial crisis from 2008, while some of them are affected by debt themselves, thanks to student loans.

Causes like these made Millennials stay away from spending money they don’t have and instead rely on debit cards or even cash. And this comes with the risk of losing great benefits that rewards cards or cash back credit cards bring.

Are Millennials precautious? Definitely!

On the other side, avoiding debt is a smart decision, but you can also do this while using a credit card responsibly and start racking up benefits.

Just remember that owning a credit card is a great way of building credit score, one of the first things a lender checks. Also, opting for a credit card instead of a debit one is a better way of remaining safe against a potential fraud.

And this is not it, since a debit card can lead to a loss of $500 or more, depending on how quickly you report the incident. As for a credit card, you can’t lose more than $50, presuming that the thief makes a contactless payment!

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