Millennials have grown up in the world of advanced technologies and consumerist culture. They believe in living their dreams and their priority is personal fulfillment.
Almost 50% of the global workforce will be this generation by 2020. Although they have higher spending power, millennials are equipped to manage their finances. This generation controls their finances with a focus on accumulating rewards and builds their credit.
Credit cards allow the millennials to do more towards achieving personal gratification. Here are five reasons why every millennial must own a card.
- Cashless payments
A high percentage of the population use cards for their spends such as shopping, dining, and entertainment. With the convenience of making cashless payments across various secure platforms, the need for cash is slowly reducing.
- Financial planning
A credit card allows millennials to defer the payment for their purchases to a later date. Card companies offer a line of credit that may be paid off after a few weeks after the bill is generated. Some companies allow users to make partial payments, which enables them to make bigger purchases through installment plans.
- Build credit score
Based on credit history, the credit information companies calculate the creditworthiness of individuals. Users may use their card for purchases and then ensure the bill is paid off before the due date. This helps millennials to build their credit scores, which is beneficial in the future when they apply for other loans such as a car or home loan.
- Explore and save money
One of the best ways to travel and explore new places is to use cards without affecting the wallet. Some of the card companies offer exclusive deals and savings through seasonal promotions, partnerships, and lifetime privileges. Additionally, partnerships with different airlines and hotel chains allow millennials to travel to new places while saving money, enabling them to learn about newer cultures and places.
- Earn reward points
There is almost no limit to earning reward points on card spending. These points may be converted to different rewards, which may be materialistic things or experiences. As much as 59% of the cardholders use plastic money to accumulate these reward points. Card companies offer bonus points such as welcome gifts, everyday spending, monthly expenses, and anniversary renewals to attract more customers. The points may be redeemed for exclusive items from the reward catalog.
Credit cards are also beneficial to meet financial emergencies. Although cards have several benefits, users must be smart about using these. It is important they keep a check on their spends and ensure the bills are paid in a timely manner. This ensures there are no late penalties and finance charges.