Nearly 83% of US Millennials aged 25 to 34 use credit cards to fund their lifestyle, according to a new report by FICO, which is opposite to the general perception that Millennials are debt-averse and use debit cards or checking accounts.
The study shows that almost 31% of consumers 25-34 years old carry a balance of $1,000-$4,999 over each month, on their credit card. This group also had more balances in the $5,000-$9,999 range.
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Nearly half of Millennial respondents 25-34 own at least three cards, and 19% plan on using them to buy big ticket items such as a new car.
The report published by analytic software firm FICO further shows that 37% of Millennials are likely to apply for a new credit card over the next six months, while 77% will continue to use credit cards over the next five years.
Millennials prefer new credit cards that offer: waived annual fees (85% of respondents), cash back rewards (75%) and lowest interest rates (73%).
FICO senior director Joshua Schnoll said: "Millennials are very interested in obtaining and using credit cards as they remain a convenient mode of payment and source of credit.
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By GlobalData"They are still maximizing their earning potential but also juggling numerous lifestyle costs, such as college loans, car and home ownership, as well as supporting young families."
The report further highlights that 49% of Millennials have between three and five credit cards, which forced banks to compete for share of wallet.
Millennials want credit cards that provide account notifications (56%) and enhanced security (53%), according to the study. A poor mobile banking experience is also likely to provoke them to switch banks more than other groups.
This online survey was carried out by FICO in October and November 2015, in which approximately 1,000 US consumers over the age of 17 participated.
