CHARLOTTE, N.C., Aug. 21, 2015 /PRNewswire/ --
LendingTree, the nation's leading online loan marketplace,
recently conducted a survey among a nationally representative
sample of 3,170 Americans to gain insight into credit card
behaviors, sentiments and trends. Most notably, the survey data
suggests that younger generations are less reliant on credit cards
than previous generations. Additionally, both Gen Xers and Baby
Boomers are more cash-strapped and debt-dependent than
Millennials.
Of the 957 Millennials (b. 1980-1997) surveyed, only 61.34
percent said they own at least one credit card, representing the
generation segment with the lowest credit card ownership rate.
Following Millennials, 79.24 percent of the 785 Gen Xers (b.
1965-1979) surveyed stated that they owned at least one credit
card, and 88.70 percent of the 1,150 Baby Boomers owned at least
one credit card. The Silent Generation (b. 1925-1945) had the
highest credit card ownership, with an astounding 96.55 percent (of
232 surveyed) owning at least one credit card.
"The millennial generation seems to be more averse to debt as it
relates to credit cards, which could be attributed to lasting scars
from the financial crisis of 2007-08," said Doug Lebda, founder and CEO of
LendingTree. "Older Americans are more reliant on credit
cards to maintain their monthly expenses and cash flows when
compared to younger generations. It will be interesting to see how
this trend develops with the emergence and adoption of new payment
methods."
When respondents were asked for their sentiments related to
owning a credit card, Millennials were the least likely to feel
they were needed. Only 28.84 percent said credit cards were "pretty
much required today," and over one-fourth (25.29 percent) of
Millennials believed they "Don't need one. Don't spend what you
don't have."
Not only do Millennials feel they do not need credit cards, but
among those that still use cards, they were better at paying off
their balance in full each month when compared to both Gen Xers and
Baby Boomers. Roughly 54 percent of Millennials paid their balance
in full each month while Baby Boomers were close behind, with 52.65
percent paying off their complete balance each bill cycle.
The generation that was the worst at paying off their credit
card balances each month was Gen X. Only 42.12 percent paid their
balance in full each month. Additionally, Gen Xers have the highest
percentage of respondents stating they only pay off the minimum
balance each month, with 11.58 percent paying the minimum and
revolving the rest.
While the Silent Generation were the most likely to both have a
credit card and state they were pretty much required today, they
were also the most responsible in paying their debts with 71.88
percent paying credit card balances in full each month.
"Using credit cards as a primary form of payment absolutely has
its benefits, as long as the card user is responsible in managing
their credit," continued Lebda. "While it may be surprising to see
that the conservative Silent Generation is the age group with the
most credit card dependency, they also have the proper cash flow
and financial discipline to support the behavior, getting the most
benefit out of credit card perks and rewards. Millennials may still
be burdened by other economic factors such as student debt and a
historically weak job market, so their lower reliance on credit
cards could be seen as a positive indicator of their fiscal
responsibility. As millennials enter the housing market, lower debt
levels could translate into more sustainable housing and economic
growth."
For Gen Xers, the data does suggest the generation was
negatively impacted by the economic bubble, perhaps more so than
even Millennials. Members of Generation X still have plenty of time
and working years to get back on track and improve their spending
habits. Resources such as debt consolidation loans can help lower
monthly payments or lower total interest payments. LendingTree
recommends comparing offers from lenders and credit providers as
well as researching ratings and reviews to find a trusted financial
partner.
Infographic
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Methodology
The 2015 U.S. Credit Card Survey was conducted online within
the United States by SurveyMonkey
on behalf of LendingTree between July 16 and
July 21, 2015 among a nationally representative sample of
3,170 Americans ages 18 and up.
About LendingTree
LendingTree (NASDAQ: TREE) is the nation's leading online loan
marketplace, empowering consumers as they comparison-shop across a
full suite of loan and credit-based offerings. LendingTree
provides an online marketplace which connects consumers with
multiple lenders that compete for their business, as well as an
array of online tools and information to help consumers find the
best loan. Since inception, LendingTree has facilitated more than
55 million loan requests. LendingTree provides free monthly credit
scores through My LendingTree and access to its network
of over 350 lenders offering home loans, personal loans, credit
cards, student loans, business loans, home equity loans/lines of
credit, auto loans and more. LendingTree, LLC is a subsidiary of
LendingTree, Inc. For more information go
to www.lendingtree.com, dial 800-555-TREE, like
our Facebook page and/or follow us on
Twitter @LendingTree.
Media Contact:
Megan Greuling
704-943-8208
megan.greuling@lendingtree.com
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SOURCE LendingTree