Millennials believe they are fiscally responsible, according to a new study, with 96% indicating just that. But it may be a work in progress with 44% also admit to having paid a late fee, missing a payment, going over their credit limit or having to make payment arrangements with their credit card company.
During Discover’s national poll they spoke with millennials who had a credit card and those who did not, with 80% of non-cardholders believing they are fiscally responsible, yet just 1 out of 4 could ballpark their credit score. Over the past six months just 20% had looked at their credit score or report, but 37% of cardholders said that having a credit card had taught them how to properly manage their credit.
Across the boards when it comes to credit, knowledge is power. “It is important that millennials be aware of their credit information because it influences how lenders, auto dealers and others evaluate them,” said Ryan Scully, vice president of new cardmember acquisition at Discover. “With our Discover it cards, we give cardmembers their FICO® Credit Score for free, alerts to help them manage their account and access to Discover’s Credit Resource Center which provides content on credit education and best practices.”
Credit Cards trending with Millennials
Millennial’s are definitely bellying up to the credit bar, with 63% having two or more credit cards in their wallet. And many believe the younger the better when getting their first card, with 52% saying the best age to get your first card is between 18 and 22.
What about the millennials between 18 and 22? They indicate that having a credit card has helped them be more responsible, with 50% knowing what a credit score is and how it works.
Top picks for getting a credit card
Why are the younger millennial getting credit cards? For 63% eating out at restaurants is a great reason and took the top spot in the survey with small eveyday purchases, like buying coffee and getting a snack, coming in second (62%).
There other reasons are:
• Gassing up and Transportation – 58 percent
• Going out and Entertainment (movies, concerts) – 50 percent
• Major purchases (TVs, electronics, furniture) – 48 percent
• Emergencies – 47 percent
• Paying bills (monthly)– 40 percent
• Maintaining their personal appearance – (haircuts, spa & manicures) – 31 percent
• Big life expenditures (tuition, wedding) – 26 percent
The Discover Survey was conducted in December 2014. They interviewed 2,000 consumers in the 18 to 32 age range.