A recent online survey conducted by Harris Poll shows 29 percent of American adults between the ages of 18 and 34 does not possess a personal credit card. About 14 percent of the 2,000 millennials surveyed would describe present credit score as no credit history or limited score. In contrast, only about two percent of adults aged above 35 reported the same. The survey was commissioned by Cardratings.com. Only people above 18 years and above of age were included in the study.
Credit card a must
Cardratings.com has pointed out that the non-presence of any credit card could turn out to be detrimental for any individual. Consumers, in absence of any credit card, could find it extremely difficult to purchase any big ticket items like property and personal vehicles. The person concerned could be negatively affected for a number of years. When it comes to buying a home, mortgages will ne much harder to get in absence of a credit card. Even if one gets a loan, monthly payments will be steep and demanding on the pocket. Worryingly, these state of affairs are suffered by about 40 percent of the polled millennial population and they may not get the loans needed to purchase the property they want.
Credit is also useful when it comes to financing businesses. This includes the need of a distinct credit card to make sure that personal and professional purchases remain separate. Even though poor credit does not equal a consumer from taking advantage of business credit, individuals with a poor credit history may have much fewer choices when it comes to lenders. According to US Small Business Administration, some budding entrepreneurs may not enjoy access to any cash at all.
Use and rewards
When it comes to savings, there could be minuscule loss in probable income. This is based on sacrificing free rewards like travel miles and cash back which are derived from everyday use of cards and avoidance of interest charges paid every month. These charges are paid in full. Cars are an important buy and good credit must be present to buy a vehicle at best rates. It is to be noted that vehicles can be considered as a deprecating asset and any upward movement of the cost of financing will have a noticeable effect on bottom line. It is observed that among the credit card wielding millennials aged between 18 to 34, around 28 percent of them do not enjoy the benefits of rewards credit card.