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Why Gen Zers are turning their backs on credit cards

The news: Despite frequently using them, many Gen Zers hold negative views toward credit cards, according to a Cash App Afterpay survey conducted by Morning Consult.

  • More than two-thirds of Gen Zers (68%) said credit card bills cause them stress and anxiety.
  • More than half (53%) said they are frequently surprised by how much they pay in interest fees.
  • And 51% said credit cards give them the “ick.”

The bigger picture: Many Gen Zers have found themselves in credit card debt. Around 1 in 6 Gen Z credit cardholders have utilized more than 90% of their credit limit, per the Federal Reserve Bank of New York. This is a higher share than any other generation. And high credit card APRs have made it harder to dig themselves out of debt. During the first week of April, the average rate was 20.09%, per Bankrate.

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