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Young Adults Not Buying on Credit
CEDAR RAPIDS, IA (CBS2/FOX28) – 20 to 30-year-olds to day might be different from their parents’ generation in that fewer of them have credit cards, but that does not mean it is a bad thing.
“They’re seeing the repercussions that previous generations and their parents and even friends and relatives have had with credit card problems,” said Homeland Credit Restoration’s Christian Clarke.
“I like just taking out of my account so I don’t have to worry about late fees or anything like that,” said 18-year-old Elijah Krephle, who does not use any credit cards.
Younger generations have replaced the credit card with debit cards, or just cash. Starting a credit line might be right for some.
“I got credit cards to help build my credit,” said 22-year-old Alex Buchheit, who has three credit cards. “Obviously you have to be responsible while using it. Can’t be dumb about it.”
The simple pieces of plastic can be pretty dangerous in the hands of someone who does not understand how their credit card bill works. Especially in a mall, where there is no shortage of places to spend money.
“I know I’m a crazy shopper and if I had one I would max it out and be in a lot of trouble,” said 22-year-old Ally Covington.
Clarke says the problem is not having any credit card means that there is a big portion of your credit score that’s not accounted for. That could make a single late payment hurt your score more. Sometimes, it’s still the lesser evil.
“It’s worse to have a credit card and misuse it than not have one at all,” said Clarke.
If you’re going to get a credit card, do the homework and know how your purchases will help, or hurt.