ALL >> Business >> View Article
Why More Young Adults Use Credit Cards
Why Young Adults Are Flocking to Credit Cards in Greater Numbers
Take a trip to any mall in America and you’ll see that many of the shoppers are young adults. This segment of shoppers likes to spend money, and often the money isn’t theirs.
According to a Bankrate survey from January of 2021, 50 percent of individuals ages 25 to 31 own at least one credit card. That survey also found that over a third of individuals ages 18 to 24 also have at least one credit card. These are all percentage increases, as in 2016, Bankrate found that just 33 percent of individuals ages 18 to 29 owned a credit card.
There are a few key reasons why young adults are flocking to credit cards in greater numbers these days, and these are discussed in the following section.
Benefits of Using Credit Cards for Young Adults
One-Time Bonuses
One-time bonuses are attractive to young adults for a variety of reasons. Some view one-time bonuses as a reward for spending money. To these individuals, the $150 (or more) bonus is like a gift from the credit card company; a thank you for spending their money and paying ...
... it back.
Others view the one-time bonus as a deduction for a purchase. In other words, if you’re planning to buy a $600 television as the first purchase on a new credit card—and there’s a one-time bonus of $200 if you spend over $500—you’re really only spending $400, as $200 will be credited back just because you spent the money.
Cash-Back Incentives
The cash-back incentive is similar to the one-time bonus incentive. Cash-back, however, is not a one-time reward, but rather a reoccurring reward that’s percentage-based. These days, credit cards offer anywhere from 1 percent to 3 percent cash-back on all purchases, and often there are special offers that guarantee even higher cash-back percentages.
Rewards
Young adults like credit cards that utilize points systems, as the points a cardholder accrues can eventually be redeemed for travel, gift cards, or merchandise. If an individual is routinely spending at a particular store, they should apply for a store credit card, as this way they can take advantage of the points system and get more from spending.
Safety
Credit cards aren’t as prone to fraud as debit cards are, and here again, this is a reason why young adults prefer the former over the latter. Young adults do a lot of shopping online, and therefore they need the added protection that credit cards afford.
Moreover, if a merchant can do NFC payments, a credit cardholder can use their card without ever swiping. Or, if the card is linked to their smartphone, they can use it without ever taking out the physical card.
How Businesses Can Take Advantage of This Trend
Businesses that do credit card processing can take advantage of this trend, and now it’s possible to do so without spending thousands on transaction fees. By partnering with Swipe4Free and using their credit card machines, a business can now pass on credit card transaction fees to their customers, and they can use the money saved to offset other rising costs. No wonder more and more businesses are eliminating transaction fees with Swipe4Free.
About Swipe4Free
Swipe4Free is the nation’s number one cash discount and surcharging platform. Founded by Leo Vartanov and Chris Benabu in 2015, Swipe4Free allows merchants to pass their credit card processing fees along to the customer by implementing a 4% non-cash charge to all customers who pay with credit cards. The non-cash charge is legal within all 50 states and is automatically waived when customers pay with cash or a gift card. The customers are made aware of the non-cash charge with signage and stickers that we provide for your place of business. You can place the signage on the door of the business as well as on/near the register where customers pay. We also provide language for online businesses to make customers aware of the non-cash charge. This 4% non-cash charge eliminates all your credit card processing fees, allowing you to keep 100% of the profits per transaction made with credit cards. Swipe4Free uses the 4% non-cash charge to cover interchange costs, authorization costs, transaction costs, and support for our merchants.
Add Comment
Business Articles
1. Lucintel Forecasts The Canadian Residential Humidifier Market To Reach $234 Million By 2030Author: Lucintel LLC
2. Boost Your Property’s Value With High-quality Driveway Installations
Author: Vikram kumar
3. Eco-friendly Expertise: Leed Consultancy In Dubai And Uae
Author: kohan
4. Best Travel Websites
Author: RishiHassan
5. Top 5 Essential Dog Training Equipment For Active Dogs: Harnesses, Crates & More
Author: Von Ultimate Dog Shop
6. Mindpath Technology Limited – Transforming Businesses With Innovative It Solutions
Author: Mindpath
7. What Are The Costs Of Charging At Public Stations Vs. Home Chargers?
Author: -
8. When To Diy And When To Call The Professionals
Author: Maria Marshall
9. Uniquemark Solutions: Your Trusted Digital Partner In Pune
Author: Uniquemarks
10. The Ultimate Guide To Optimizing Your Website For Conversions
Author: Peggy Police
11. The Advantages Of Using Walnut Shells In Media Blasting For Industrial Applications
Author: Kramer
12. How To Make Iso 35001 Documentation For Biorisk Management System
Author: Emma
13. How To Make Your Product Photography Stand Out
Author: Sam
14. Experienced House Removalists Brisbane | Quality Packing & Moving Services
Author: Sarahwilliams
15. Best Astrologer In Kacharakanahalli
Author: Astroservice7