- An astounding 64% of millennials do not own a credit card, according to a new Bankrate.com (NYSE: RATE) report. The study shows that credit card usage increases with age, wherein 55% of 30-49 year olds have credit cards, 62% of people age 50-64 use them and 68% of those ages 65+ affirm they own a credit card. To view the survey results go to:
“Millennials are clearly falling short in terms of credit card usage compared to their elders,” said Mike Cetera, Bankrate.com’s personal loans and credit analyst. “A credit card shouldn’t be seen as taboo. Used correctly, a credit card can not only provide the added benefit of points and rewards, but also help establish a healthy credit score which will be valuable for such things as a lease or mortgage in the future,” Cetera added.
Overall, the poor and less educated are the least likely to own credit cards. 72% of people who make less than $30,000 per year do not own a credit card, compared to only 18% of those who are card-less and make over $75,000. 63% of people with a high school degree or less do not use credit cards, compared to only 17% of college grads.
A person’s political affiliation also appears to influence their credit card usage. More Republicans own credit cards than Democrats, 71% vs 59%, respectively.
Princeton Survey Research Associates International obtained telephone interviews with a nationally representative sample of 1,002 adults living in the continental United States. Interviews were conducted by landline (502) and cell phone (500, including 283 without a landline phone) in English and Spanish by Princeton Data Source from May 19-22, 2016. Statistical results are weighted to correct known demographic discrepancies. The margin of sampling error for the complete set of weighted data is plus or minus 3.7 percentage points.
About Bankrate, Inc.
Bankrate is a leading publisher, aggregator and distributor of personal finance content on the Internet. Bankrate provides consumers with proprietary, fully researched, comprehensive, independent and objective personal finance editorial content across multiple vertical categories including mortgages, deposits, credit cards and other categories, such as retirement, automobile loans and taxes. The Bankrate network includes Bankrate.com, CreditCards.com and Caring.com, our flagship websites, and other owned and operated personal finance websites, including Interest.com, Bankaholic.com, Mortgage-calc.com, CreditCardGuide.com and CreditCards.ca. Bankrate aggregates rate information from over 4,800 institutions on more than 300 financial products. With coverage of over 600 local markets, Bankrate generates rate tables in all 50 U.S. states. Bankrate develops and provides web services to over 100 cobranded websites with online partners, including some of the most trusted and frequently visited personal finance sites on the Internet such as Yahoo!, CNBC and Bloomberg. In addition, Bankrate licenses editorial content to over 500 newspapers on a daily basis including The Wall Street Journal, USA Today, The New York Times, The Los Angeles Times and The Boston Globe.