Plastic-Shy Young in U.S. Spur Move to New Credit DataSubmitted by meekandmild on Mon, 03/18/2013 - 11:24
Charlie Frohne never wanted a Visa or MasterCard, afraid of incurring debts he couldn’t repay. As the 30-year-old searched for a Manhattan apartment, he found landlords treated his lack of a credit history as a liability.
His experience highlights a growing reluctance among young adults to use plastic for everyday purchases. Thirty-nine percent of undergraduate students between the ages of 18 and 24 owned a credit card in 2012, down from 49 percent in 2010, a Sallie Mae and Ipsos Public Affairs survey found. And young adults who do have credit cards are carrying smaller balances: A median of $1,600 in 2010 compared with $2,500 in 2001 for under- 35 households, according to Federal Reserve data.