A Concerning Sign for Credit Card Issuers?
The future growth of the credit card market may be impeded by some current trends with young adults.
Young adults, aged 18 to 35, are not as likely to use credit cards as their parents.
According to a recently released study by the Mercator Advisory Group, 59 percent of young adults have a credit card compared to 70 percent of senior adults.
In addition, these young consumers are three times more likely than their senior counterparts to reduce their credit card use in favor of debit cards: 36% of young adults compared to 12% of seniors.
“The anti-credit card sentiment appears to be waning,” stated Karen Augustine, manager of Customer Monitor Survey Series at Mercator Advisory Group. “But, issuers need to address the needs of the young adults in order to stimulate greater credit card volume.”
The study, entitled “Consumers and Credit: 2012: Come Back, Young Cardholders”, was conducted on 1,003 online consumers throughout the country in June 2012.