by Holly Johnson 
Cheap, easy credit might have been tempting to 
young people in the past, but not to today’s millennials. 
According to a recent survey by Bankrate of over 
1,161 consumers, 63% of adults ages 18 to 29 live 
without a credit card of any kind, and another 23% 
only carry one card. 
The Impact of the Great Recession
Research shows that the environment millennials 
grew up in might have an impact on their finances. 
Unlike other generations, millennials lived through 
economic hardships during a time when their adult 
lives were beginning. According to the Bureau 
of Labor Statistics, the Great Recession caused 
millennials to stray from historic patterns when it 
comes to purchasing a home and having children, 
and a fear of credit cards could be another symptom 
of the economic environment of the times.
And there’s much data when it comes to proving 
that millennials grew up on shaky economic ground. 
The Pew Research Center reports that 36% of 
millennials lived at home with their parents in 2012. 
Meanwhile, the unemployment rate for people ages 
16 to 24 was 14.2% (more than twice the national 
rate) in early 2014, according to the BLS. With those 
figures, it’s no wonder that millennials are skittish 
when it comes to credit cards. It makes sense that 
young people would be afraid to take on any new 
forms of debt.
A Generation Plagued with Student Loan Debt
But the Great Recession isn’t the only reason 
millennials could be fearful of credit. Many experts 
believe that the nation’s student loan debt level might 
be related to it. According to the Institute for College 
Access & Success, 71% of millennials (or 1.3 million 
students) who graduated from college in 2012 left 
school with at least some student loan debt, with the 
average amount owed around $29,400.
With so much debt already under their belts, 
millennials are worried about adding any credit card 
debt to the pile. After all, many adults with student 
loan debt need to make payments for years, and even 
decades. 
How Millennials Can Build Credit Without a 
Credit Card
The fact that millennials are smart enough to 
avoid credit card debt is a good thing, but that doesn’t 
mean the decision has its drawbacks. According to 
Experian, most adults need a positive credit history 
in order to qualify for an auto loan or mortgage. Even 
worse, having no credit history is almost as bad as 
having a negative credit history in some cases.
Still, there are plenty of ways millennials can 
build a credit history without a credit card. A few tips:
• Make payments on installment loans on time. 
Whether it’s a car loan, student loan or personal 
loan, make sure to mail in those payments on 
time and pay at least the minimum amount 
required.
• Put at least one household or utility bill in your 
name. Paying your utility or household bills on 
time can help you build a positive credit history.
• Get a secured credit card. Unlike traditional 
credit cards, the funds secured credit cards 
offer are backed by money the user deposits. 
Signing up for a secured card is one way to 
build a positive credit history without any risk.
The fact that millennials are leery of credit cards 
is probably a good thing in the long run. After all, not 
having a credit card is the perfect way to stay out of 
credit card debt. Even though it might be harder to 
build a credit history without credit cards, the vast 
majority of millennials have decided that the plastic 
just isn’t worth it.

piles of bills to pay every month, but they can use their  credit cards moderately.

so many bills to pay that credit card bills wouldn’t make  much difference.

so many bills to pay that they have to sell their  belongings.

so much debt to pay that they can’t afford another one.

no credit cards simply because they don’t like them.

explain the millennials’ credit card affection.

defend the millennials’ fear of credit card use.

describe the millennials’ attitude towards the credit card.

present the millennials’ credit card historical  background.

demonstrate the millennials’ need of credit card use to  build a credit history.

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