Young Adults Increasingly Choosing to Avoid Credit Cards

Stall their economic growth

A growing number of young adults say they are reluctant to apply for and use credit cards. In 2010, 49 percent of undergraduates aged 18 to 24 owned a credit card; that number dropped to 39 percent in 2012. Additionally, those who do have credit cards are carrying smaller balances. In 2001, the median balance was $2,500; that number has since dropped to $1,700 in 2010. The trend is deeply rooted in stricter lending rules and weaker job outlooks. Fewer young adults are building the credit histories that would help them get financing for purchases of the homes and cars -- things that are critical to economic growth. Credit card use for young people began declining prior to the recession, based on the Pew findings. (Chicago Tribune)

[SUBSCRIBE TO LOOP 21 RSS FEED]