NEW YORK (Reuters) – Cash is king with young people, but it is not helping them build a credit history or boost their credit scores.
FILE PHOTO: U.S. dollar bills blow near the Andalusian capital of Seville in this photo illustration taken on November 16, 2014. REUTERS/Marcelo Del Pozo/File Photo
Among millennials aged 18 to 29, those with a college degree are the savviest about using credit cards, according to a survey released Wednesday conducted by Sallie Mae and Ipsos. As a result, more than 70 percent had decent credit scores above 650, with 40 percent in the excellent range of 750 to 800.
By contrast, college students and those who never finished a degree used credit cards much less frequently and had lower credit scores. Among students, just 20 percent boasted excellent credit while the non-completers had just 8 percent, according to the survey.
“Overall, they more frequently use a debit card. They are more comfortable,” said Marie O’Malley, senior director of consumer research at Sallie Mae.
While many young people use cash to keep themselves from building up debt, they also are putting off some aspects of adulting. You need a credit history to get mortgages or car loans,Read the rest of this post here