RIVERWOODS, Ill.--(BUSINESS WIRE)--Jul. 8, 2015--
Ninety-six percent of millennials who have credit cards consider
themselves financially responsible, yet 44 percent of those surveyed
have either missed a payment, paid a late fee, exceeded their credit
limit or had to work out a payment plan with a credit card company,
according to a survey commissioned by Discover.
The national survey polled 2,000 millennials between the ages of 18 and
32, including both credit cardholders and non-cardholders. The survey
found that 80 percent of non-cardholders also consider themselves
financially responsible, but only about 1 out of 4 knew their
approximate credit score. And even fewer, about 20 percent, had checked
their credit report or credit score in the last six months; while 37
percent of cardholders surveyed said they learned to manage credit
responsibility by using credit cards.
“It is important that millennials be aware of their credit information
because it influences how lenders, auto dealers and others evaluate
them,” said Ryan Scully, vice president of new cardmember acquisition at
Discover. “With our Discover it cards, we give cardmembers their FICO®
Credit Score1 for free, alerts to help them manage their
account and access to Discover’s Credit Resource Center which provides
content on credit education and best practices.”
Other results of the survey showed that millennials are actively
applying for lines of credit with 63 percent of those polled currently
having two or more credit cards. Fifty-two percent of the millennial
cardholders surveyed also believed that a first credit card should be
obtained between the ages of 18 and 22.
When broken down further, 99 percent of those surveyed between the ages
of 18 and 22 said they are aware of what a credit score is, and 50
percent of the age group believed that having a credit card helped them
become more financially responsible.
When the 18 to 22 year old age range was asked to choose their top
reasons for using credit cards from the following list, restaurants &
dining out made the list 63 percent of the time, followed by:
-
Small daily purchases (coffee, snacks, etc.) – 62 percent
-
Gas/Transportation – 58 percent
-
Entertainment (movies, concerts) – 50 percent
-
Major item purchases (TVs, electronics, furniture) – 48 percent
-
Emergencies – 47 percent
-
Monthly bills – 40 percent
-
Personal appearance – (manicures, haircuts, spa) – 31 percent
-
Major life expenses (tuition, wedding) – 26 percent
The Discover it® chrome card gives cardmembers 2% Cashback
Bonus at gas stations and restaurants, on up to $1,000 in combined
purchases each quarter, which are two of the top reasons 18-22 year olds
use their credit card.
To learn more about the Discover it® chrome card, please
visit https://www.discover.com/credit-cards/student/.
To visit Discover’s Credit Resource Center: https://www.discover.com/credit-cards/resources/
The national survey of 2,000 consumers was commissioned by Discover and
conducted by uSamp, an independent survey research firm (www.usamp.com),
in December 2014. The maximum margin of sampling error was ±3.25%
percentage points with a 95% percent level of confidence.
About Discover
Discover Financial Services (NYSE: DFS) is a direct banking and payment
services company with one of the most recognized brands in U.S.
financial services. Since its inception in 1986, the company has become
one of the largest card issuers in the United States. The company issues
the Discover card, America's cash rewards pioneer, and offers private
student loans, personal loans, home equity loans, checking and savings
accounts, certificates of deposit and money market accounts through its
direct banking business. It operates the Discover Network, with millions
of merchant and cash access locations; PULSE, one of the nation's
leading ATM/debit networks; and Diners Club International, a global
payments network with acceptance in more than 185 countries and
territories. For more information, visit www.discover.com/company.
1 Your FICO® Credit Score is based on data from
TransUnion and may be different from other credit scores. Limitations
apply to the FICO® Credit Score for free benefit. See
Discover.com/FICO to learn more. FICO is a registered trademark of the
Fair Isaac Corporation in the United States and other countries.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150708005095/en/
Source: Discover Financial Services
Discover
Derek Cuculich, 224-405-0665
[email protected]