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No. of Recommendations: 5
Learning to live without credit card debt is a good thing and this is an encouraging statistic:


"Credit card usage is fairly robust in the U.S., with 33% of U.S. adults owning at least one or two credit cards, and another 34% owning three or more cards as of 2014, according to CreditCards.com. But there's one key demographic that's engineering a slide in credit card use: Millennials. And this trend provides a cautionary tale about future credit card usage.

According to MyBankTracker.com, 49.7% of young Americans between the ages of 18-and-34, the so-called millennial generation, don't own a credit card. Worse for the card industry, 35% of Americans aged 25 to 34 (an age group that should start earning some decent money) "has never applied for a credit card."

One big factor is the front row seat younger consumers had for the Great Recession, watching their parents and grandparents struggle with debt. Another is their own wrestling match with enormous debts of their own making. "Millennials are avoiding credit cards because they belong to a generation that is more aware of the dangers of debt, especially credit card debt and student loan debt," notes Alex Matjanec, CEO of MyBankTracker. "Their sensitivity to debt was heightened due to growing up during the Great Recession and the increased susceptibility to financially-focused media -- thanks to the Internet and social media."

http://www.msn.com/en-us/money/everydaymoney/young-americans...
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No. of Recommendations: 3
Or they're being denied for not having a credit file. I (late Gen-X) applied for (and received) my first card my junior year of college, just as the dot-com boom was really hitting its stride. Companies had tables with piles of apps on at least one of the main crossroads weekly, sometimes two or three times a week if the weather was nice. I never heard of anybody being denied. Fast forward about fifteen years, to when kid sis (Millennial) was in college. Those tables were around maybe once a month, and just about everyone was denied at least once, usually multiple times, unless they got a card through their own bank and used their savings account as a backstop.
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No. of Recommendations: 4
One big factor is the front row seat younger consumers had for the Great Recession, watching their parents and grandparents struggle with debt. Another is their own wrestling match with enormous debts of their own making. "Millennials are avoiding credit cards because they belong to a generation that is more aware of the dangers of debt, especially credit card debt and student loan debt," notes Alex Matjanec, CEO of MyBankTracker. "Their sensitivity to debt was heightened due to growing up during the Great Recession and the increased susceptibility to financially-focused media -- thanks to the Internet and social media."

Interesting that the assumption seems to be that if you use a credit card, you will carry a balance and have debt. Not everyone does that. Some of us, including those Millenials, use credit cards for their convenience and rewards, and pay the bill in full every month when it arrives so there is no debt.

I suspect that the Millenials are probably similar to the general population where a lot of them do have lots of debt, but a bunch are like some of us here who are financially responsible, and don't see a credit card as "free money." They just see it as another way to pay similar to using cash or a check.

I just think the article is painting with too much of a broad brush.
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I just think the article is painting with too much of a broad brush.

I don't have any statistical data to back this up, but I suspect that a broad brush is appropriate. I suspect that a majority of credit card holders have used their card(s) to make purchases for stuff they don't have the money for already.

xtn
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I don't have any statistical data to back this up, but I suspect that a broad brush is appropriate. I suspect that a majority of credit card holders have used their card(s) to make purchases for stuff they don't have the money for already.

38.1% of all households carry some sort of credit card debt

http://www.valuepenguin.com/average-credit-card-debt

PSU
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...49.7% of Americans between the ages of 18-and-34... don't own a credit card.

I'm astonished. I thought almost everyone had at least one credit card. How do they pay for rental cars, hotels, airfare, restaurant meals, movie tickets, Amazon purchases, or even just groceries and gas? Checks? Debit cards?
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How do they pay...

OK, I read the article. Debit cards. And I totally understand the logic of doing it that way, and if banks provided the same protection for debit cards as for credit cards, that'd be great, but they don't, despite what the debit card users seem to believe.
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OK, I read the article. Debit cards. And I totally understand the logic of doing it that way, and if banks provided the same protection for debit cards as for credit cards, that'd be great, but they don't, despite what the debit card users seem to believe.

=========================

Many of the folks I know don't make enough money to fly, rent cars, or stay in motels, etc. They certainly don't want to use a CC they can't pay the payment on. Most do not have overdraft protection, so they can't spend more than they have.
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How do they pay for rental cars, hotels, airfare, restaurant meals, movie tickets, Amazon purchases, or even just groceries and gas? Checks? Debit cards?


Debit cards/cash.

Speaking only for the boy - he, his girlfriend and the couple with whom they share an apartment all operate on a cash-only basis.
None of them have credit cards and they've not applied.


peace & balance sheets
t
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No. of Recommendations: 2
DS2 (Redhead) will be 30 next week. He pays for everything in cash, INCLUDING the house he just bought. I think he has a credit card for emergencies. No mortgage, no debt. Pretty amazing.


Isewquilts....also debt free
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"Checks?"

We use credit cards for virtually every retail purchase, and pay the bill in full at month's end. But we still pay a number of other bills (utilities, credit card bills, unreimbursed medical) using our checking account.
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"He pays for everything in cash"


Very smart young guy.

Your BEST credit is your own cash.
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"38.1% of all households carry some sort of credit card debt"

I wonder if that includes people who carry the debt for the month, and then pay the bill in full upon receipt? Or, does the 38.1% represent card holders who carry some "unpaid" balance from month to month?
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"he, his girlfriend and the couple with whom they share an apartment"

Just curious how big the apartment is?
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Your BEST credit is your own cash.

Unless you're trying to rent a car, buy a plane ticket, or get a hotel room.
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InconclusiveFool,

The statistics from 2014 show 34 carry a balance month-to-month.


http://www.creditcards.com/credit-card-news/credit-card-debt...

The number of revolvers has been decreasing steadily since 2009, when the National Foundation for Credit Counseling first began surveying Americans about the issue. In 2014, only about one in three U.S. adults say their household carries credit card debt from month to month, down from 44 percent in 2009. Some 15 percent of adults -- more than 35 million people -- roll over $2,500 or more in credit card debt each month.

Read more: http://www.creditcards.com/credit-card-news/credit-card-debt...
Follow us: @CreditCardsCom on Twitter | CreditCards.com on Facebook
Compare credit cards here - CreditCards.com
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A question:

Can you use Paypal and something like Apple-Pay without a credit card, by linking it directly to a bank account?

If so, Millennials might just be embracing other payment technology much faster (no surprise).

Any of us GenXers and Baby Boomers who got a credit card and always paid it off, it was just a more convenient/modern form of payment from what was available decades ago (cash, checks, eventually debits) and really used as a "charge card" a la American Express. Where as for someone younger who has no desire to have "credit" because they don't want debt, they might be looking at more recently invented options.
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But we still pay a number of other bills (utilities, credit card bills, unreimbursed medical) using our checking account.

I usually pay unreimbursed medical with a credit card and then pay the credit card off in full each month. I figure while I'm paying for a portion of a lab test or what not, might as well get the 2% cash back from my cc.
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Unless you're trying to rent a car, buy a plane ticket, or get a hotel room.

Where does this garbage idea come from? I've done all three routinely without a credit card.
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No. of Recommendations: 11
I've done all three routinely without a credit card.

You're one of the few then. I've stood at the counter renting a car countless times while some poor soul next to me was turned away because they were trying to use a debit card to rent a car. It's very hit or miss -- and mostly miss -- in my experience.

Enterprise... "select branches" only and with major hassles:

All Enterprise rental locations accept major credit cards for rental car payment. The credit card must be in the renter's name and have available credit. At the time of publication, select Enterprise branches accept Visa and MasterCard debit cards as a form of payment, however additional requirements must be met, such as providing a round-trip ticket at an airport location. A limited number of Enterprise locations accept cash as a valid form of payment though cash customers are often required to present additional documentation such as two current utility bills, a recent pay stub, proof of insurance and personal references before the rental car is issued.


Avis... not recommended:

Debit cards are not accepted at some Avis locations and are not a recommended form of prepayment.


Hertz... only at some locations, and they'll have to do a hard pull credit check first:

At Hertz locations where debit cards are accepted to qualify for a rental, in most cases, the location will perform a credit check for debit card customers to determine credit worthiness at the time of rental. The customer must meet the minimum criteria to rent using a debit card.

And all that ignores the loss of use of funds for the duration of the hold:

"In addition, the acceptance of such debit cards is contingent upon the debit cards having available funds to cover the estimated charges plus an authorization of up to USD 200.00 given certain conditions that will be outlined at time of rental. These funds will not be available for your use."

That's an aspect for car rentals as well as hotels, where the merchant routinely applies a hold in excess of the charge amount to cover risk and incidental costs. That money gets locked up, sometimes well beyond the rental or stay duration.
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"Unless you're trying to rent a car, buy a plane ticket, or get a hotel room. "

Only buy what you can afford for cash, put those purchases on a credit card and pay in full at month's end, carrying zero balance month to month. That's what I've done since receiving my very first card 30+ years ago, and my FICO is above 800.

Hence, your BEST credit is your own cash.
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Hence, your BEST credit is your own cash.

I don't understand how your anecdote about not using cash serves to support this statement.

I stand by my post -- your own cash is a lot less useful than a credit card in some situations.
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"I stand by my post -- your own cash is a lot less useful than a credit card in some situations."

I don't disagree. But the credit industry perpetuates the myth that you need to use credit and incur interest charges to establish a strong credit history. My perspective is that if you only use the credit card when you actually have the cash in hand to pay in full at month's end, you can still build a strong credit score
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You're one of the few then. I've stood at the counter renting a car countless times while some poor soul next to me was turned away because they were trying to use a debit card to rent a car. It's very hit or miss -- and mostly miss -- in my experience.

Like you said - all I can give you is my experience. I'm not a frequent traveler, but I've never had a problem booking a hotel or rental car with a debit card.

I generally prepay for these - along with the air travel. Perhaps that helps.

--Peter
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"he, his girlfriend and the couple with whom they share an apartment"
==========================
Just curious how big the apartment is?


2 bedrooms
@ 1100 square feet


peace & 14 foot ceilings
t
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"2 bedrooms
@ 1100 square feet"

Decent size. My college apartment with 4 of us was way smaller than that. I wonder if their living arrangement is like a "Friends" episode? :- )
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I wonder if their living arrangement is like a "Friends" episode?

Only if Ross & Chandler look like lumberjacks, play bagpipes & sing opera (respectively,) Monica is OCD-anal-retentive* and Phoebe has mild cerebral palsy.




peace & Good times ... (but not that show either)
t








* Ok - that's pretty spot on...
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"Only if Ross & Chandler look like lumberjacks, play bagpipes & sing opera (respectively,) Monica is OCD-anal-retentive* and Phoebe has mild cerebral palsy."

Maybe your son and roommates can make some money doing a reality show?
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I get hotel rooms with cash all the time. No, you can't reserve one over the phone that way, but you can show up, ask for a room, and pay in cash.

xtn
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Funny when I bought my house I had to get a certified bank check as my lower refused to take a stack of cash. Are you sure he paid cash?
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