Capital One Survey Explores Millennials’ Confidence
When It Comes to Credit Cards
Exciting life milestones often come hand-in-hand with financial ‘firsts’ – especially for many Millennials who are landing their first job or apartment, learning how to budget and save, or picking and responsibly using their first credit card.
Capital One wanted to know how Millennials are feeling as they tackle these major moments and the role finances play along the way. The findings from the Capital One Platinum MasterCard Credit Confidence Survey look at Millennials’ views on credit cards, including why they want a credit card, what they look for in a card, and what they know – and maybe don’t – about its importance to their financial future. Key survey findings include:
A good credit history starts with what’s in your wallet
• Nearly half (48 percent) of those surveyed say the most important reason for having a credit card is to establish a good credit rating. In fact, significantly more Millennials chose this option over others (such as to receive rewards and discounts, to have in case of emergencies or to manage cash flow).
- Tip: The Capital One Platinum MasterCard card is a great option for people looking to establish and build their credit. It even allows customers to access a higher credit line after making their first five (5) monthly payments on time.
Taking on the credit score challenge
• A quarter of Millennials (25 percent) say building a great credit score is the scariest milestone to take on at the moment. This prospect is scarier to them than asking for a raise or promotion at work (17 percent) or talking money with your significant other (12 percent). While building a strong credit score might be scary for some, there’s a few basic steps anyone can take to start improving their score.
- Tip: The two most important ways to build and maintain a strong credit history are to consistently pay your credit card, mortgage and/or other loans on time each month and pay down your balance. One of the fastest ways to establish and build credit is by getting and responsibly using a credit card like the Capital One Platinum MasterCard.
Forget the fees
• Nearly half of Millennials (43 percent) say little to no annual fee is the most important factor when looking at a new credit card.
- Tip: The Capital One Platinum MasterCard comes with no annual fee. It also comes with access to free products and tools, including the Capital One mobile app to help you stay on top of your finances.
Getting that dream job
• Only 22 percent of millennials recognize that having poor credit could put the brakes on landing their ideal job. While many Millennials cite some of the more obvious reasons that could stop them from getting their dream job, such as lack of experience (47 percent), there seems to be less awareness that employers may check credit scores as part of the job screening process.
- Tip: While updating your resume, make sure to check your credit score, too. CreditWise® from Capital One allows consumers to track and monitor their credit progress by gaining 100% unlimited, free access to their weekly credit score and history, interactive tools and credit simulators. Better yet – the tool is available to everyone whether they have a Capital One product or not.
Making a bill pay plan
• When asked about how they approach paying their monthly bills (including their credit card bill), nearly a third (31 percent) say they would pay more than the minimum on all of their bills. Significantly more Millennials chose this payment option over any other – demonstrating that many recognize the importance of paying more than the minimum payment.
- Tip: Keep an eye on bill pay reminders with Capital One alerts that come free with the Capital One Platinum MasterCard so you stay on top of what is due when – your on-time payment history is a big factor in your overall credit score.
“Experiencing the financial firsts in life can seem seriously scary. Trust me – we’ve all been there,” says Stefanie O’Connell, Millennial money expert. “However, it really doesn’t have to be scary at all. There are tools and products out there that can help you grow and find financial success, such as the Capital One Platinum MasterCard. It offers things like fraud protection, helpful alerts and the opportunity to build your credit. It’s important to take that first step and get a credit card that is simple and works for you.”
Our products, including the Capital One Platinum MasterCard, are designed to give our customers confidence through built-in tools that help them take control of their finances. We know that Millennials are looking for a lot in their credit card, including no fees, helpful alerts and the opportunity to build a positive credit history, and Capital One’s Platinum MasterCard is a great option. For more information on Capital One’s Platinum MasterCard, visit here.
Survey conducted using Google Consumer Surveys, March 2016. Survey conducted online in the United States from 3/16/16 – 3/19/16 using a validated, representative sample of 1,078 respondents. Demographic information was collected and inferred based on a respondent’s browsing history. The algorithm is the same method Google uses for advertising targeting, and uses significant indicators and patterns in order to determine gender & age.