Young people are energetic and they like to do things rather than wait for things to happen. With all the clerical task involved with credit cards process, young people opt not to use it. They like to shop with cash and i think it gives them sense of independence too. Alot of credit card company also put their prime focus on business class people ignoring the youth.
Financial institutions and credit card companies have been perpetuating the myth over the years that, "Debt can be good!". The fact that more young people are avoiding credit cards, and as such, accumulating debt, shows that there is at least one generation that is trying to live within its means.Good for them!
Credit cards are a good way to build credit. If you use it, you can pay it off at the end of the month and not have to pay any interest. If you do this, you build your credit up and you will be more likely to get that great interest rate on a car, a house or anything else you will need a loan for. If young people do not establish any credit, they are setting themselves up to pay more for houses and cars in interest because banks don't know if they will pay or if they will pay on time. Credit history help the banks determine if you are responsible with your money or not.
Contrary to popular belief, the lack of credit card use in the younger generations is not necessarily healthy for their credit scores. Although opting out of credit cards reduces the risk for accidental or careless debt, the younger generation may find it difficult to build a healthy credit score. As the younger generations age, the need to access larger credit reserves for such items as vehicles, home mortgages and business loans increases. Rather than opting out, it may be a wiser choice to limit the credit available at younger ages to reduce risk, yet build a healthy credit history.