We can’t give them credit for this behavior
You’ll get all charged up over this one.
Nearly one in four millennials (24%) think that their credit card is a “status symbol,” according to a survey of 500 millennials who had a credit card released Thursday by LendEDU.com.
Why do they think this about a piece of plastic? Michael Brown, a spokesperson for LendEDU, tells Moneyish that they may feel that it shows others they have have more money or spend more money. In other words, they think it’s a sign to others that they’re flush with cash.
Plus, banks have been marketing to them with a slew of new “status” credit cards. Instead of plastic, some cards for big spenders now come in metal (drop it down to pay the bill and you’ll hear a satisfying ‘plink’ that plastic just doesn’t deliver), as well as minimalist designs. And a bunch of new cards — like the U.S. Bank Altitude Reserve Visa Infinite Card, with a $400 annual fee, which was released this year — now have annual fees that are hundreds of dollars, simulating membership fees into an exclusive club.
Whatever the reasons that millennials think their cards are status symbols, it’s probably not a good thing. “Treating your credit card like a key to the upper echelons of society could lead to spending above your means and a mountain of debt,” LendEDU notes in its report.
That’s no good for millennials, many of whom are already in trouble with their credit card debt. People under 35 have roughly $5,800 in average credit card debt — though this is lower than what many other age groups carry.
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