A study conducted by the Princeton Survey Research Associates International (PSRAI) for Bankrate found that 6 in 10 millennials or 63 percent of millennials do not have a credit card.
According to the study, millennials (aged 18 to 29) may have a greater aversion to credit cards “since they grew up witnessing its effects on the economy.”
The Credit Card Accountability, Responsibility and Disclosure Act of 2009 (CARD Act), which make it difficult for anyone below 21 to get a credit card, was also cited as one of the reasons why the majority of millennials have no credit card.
Jeanine Skowronski, Credit Card Analyst of Bankrate, said in a statement that many millennials are cautious of potential debt as many are still struggling to pay off their student loans.
The PSRAI- Bankrate study is based on telephone interviews conducted between July and August 2014 with 1,161 representative sample adults living in the U.S.
The Consumer Federation of America (CFA), meanwhile, reported that millennials know less about credit scores compared to other adults in the U.S.
One important reason why millennials know less about credit scores, according to the CFA, is that millennials are much less likely to obtain free credit reports – the basis for credit scores.
While a majority of millennials do not own a credit card, they do have, however, a few prepaid cards in their wallet.
Packaged Facts, in its “Prepaid and Gift Cards in the U.S., 4th Edition” report, found that 18 to 34-year-olds have an average of 2.3 prepaid cards, signaling that millennials are much more responsible and aware of accruing debt.