NEW STUDY: Young Americans Ditching Credit Cards - A Good Idea? - 47 ABC - Delmarva's Choice

NEW STUDY: Young Americans Ditching Credit Cards - A Good Idea?

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SALISBURY, Md. - When making a purchase, for many people, it's second nature to whip out the credit card. However, a new study shows that for young Americans, this may no longer be the case.

According to numbers from the credit score provider Fair Isaac Corporation (FICO), 16% of consumers, ages 18 to 29, did not have a credit card last year. In the past five years, the amount of young consumers passing on the plastic has doubled.

"I'm not sure if it's young people deciding on their own and the conscious decision not to use them or the banks just don't issue credit anymore," said Stephen Hill, financial advisor.

Some local financial experts say that student loans are to blame, and many young Americans may come out of college with too much debt to even qualify for a card.

"They're almost hesitant to even think about additional credit," said Edwin Rommel, a certified public accountant.

Despite their reasons, experts say it's still important to have one, especially to build credit.

"No credit can be the same as bad credit," said Hill.

In many cases, you cannot make certain purchases without the plastic.

"You always need a credit card," said Hill. "If you want to buy a car, rent a hotel, sometimes they require a credit card."

Many people fear the temptation of swiping away their savings, but Rommel says just to be smart.

"Have a credit card and use it properly."

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