If results of a recent survey are any indication of Millennials and their financial expertise, some members of the demographic are in need of education.
Perhaps one of the most jaw-dropping statistics: 6% of Millennials believe a late credit card payment will improve their credit score.
LendEDU commissioned a poll asking 500 Millennials a variety of questions regarding the plastic in their wallet. The survey included 17 questions related to credit card usage, perceptions and knowledge.
Other key findings include:
LendEDU chose to study Millennials because they are not only the largest living generation on Earth, but many are just beginning their usage of credit cards, and their young credit histories are more at risk to be significantly damaged by credit card misuse.
Millennials have a great grasp in terms of why they should have a credit card. The majority of respondents, 69.4%, said they took out a credit card in order to build a credit history.
However, judging by the results of the poll, many Millennials are dependent on their credit card for basic living expenses such as monthly rent, groceries, and utility bills. Most financial experts argue that credit cards should not be used for serious (and hefty) expenses such as monthly rent and bills.
Thirty-six percent of Millennials have maxed out their credit card limit with 36% of millennials admitting to this.