36% of Millennials Have Never Owned a Credit Card
Millennials are sometimes viewed as the most irresponsible generation when it comes to finances, but new research suggests they may not be quite as careless as perceived. A recent study from Princeton Survey Research Associates International assessed the financial habits for 18-29 year olds, revealing that 36% have never owned a credit card.
One of the biggest factors to this relatively high number of non-cardholders is the passing of the CARD Act of 2009. Under this law, young adults under the age of 21 could not get a credit card without sufficient proof of income or a cosigner. That protects recent high school graduates and new college students from enticing credit card offers which can put them on the road to serious debt.
Concerns about the job market may also play a role in the lack of credit card ownership among Millennials. Many young adults have struggled to find a job in the current economic environment, so tempting themselves with anything that can lead to debt is just not wise. Plus, they may have observed the credit card debt their parents have incurred. It’s a positive sign that the youngest generation of adults is making an effort at securing their financial future.
The survey consisted of 1,000 adults, 142 of which were Millennials. The results may not be a complete picture of what is actually going on with this generation, but they indicate Millennials are cautious about taking on debt.