Younger Consumers Collecting More and More Credit Cards
Younger consumers have been signing up for more and more credit cards lately. They may find themselves in a juggling act with fees and interest rates down the line.
Millennials, in particular, have been increasing credit card numbers as they take advantage of bonus points and reward offers. Rider University finance expert Maury Randall says "it seems like they are drawn into all kinds of special offers, special deals and promotions.
"They get high numbers of rewards points, or they may get discounts. And this is really what is luring them in to get these cards."
But he cautions: "If somebody has a large number of these cards, they could wind up paying quite a bit annually, if they want to maintain these cards."
Randall says besides the the annual fees and high interest rates, "if they do miss a payment, they could get into a little bit more hot water than they would if they had a more normal level of credit cards. It might raise a little bit of a red flag and create some problems."
And that missed payment might be more noticeable to those who keep the credit scores.
"Also, someone who is carrying a lot of credit cards, in a way, it seems like they are running their lives around these credit cards. Their behavior and their motivation and their thought process was focusing on 'how can I get more cards, how can I get more rewards,' and they may be wasting their money."