Key Takeaways
- A 2016 Bankrate study found less than a third of Millennials have credit cards.
- Using debit cards and cash leaves you prone to both identity theft and physical theft, whereas using a credit cards protects you from both.
- Credit cards often come with rewards programs that help you earn points towards goods and services or cash back for all the purchases you make.
At one point in the movie Young Frankenstein, the 1974 movie by Mel Brooks, Dr. Frankenstein played by Gene Wilder declares, “It’s alive!” And all of a sudden, you see Frankenstein, played by Peter Boyle, come up groaning and moaning. It’s like, he’s now aware and existing. This scene reminds me of the fact that we often become aware of things because something happens suddenly that shocks us in to belief of what’s happening.
Well, I was a little shocked when I read a 2016 Bankrate study that said less than a third of Millennials have credit cards. I really couldn’t believe that’s the case. The reason this shocks me has to do with the fact that credit cards are pivotal tools in protecting yourself against identity theft. There’s a great video that highlights this fact that you can watch here by Frank Abagnale, the gentleman featured in the movie Catch Me If You Can and who has worked for the FBI’s cyber security team for the past 20 years. If you watch from 37:30 to 47:30, he clearly explains the only place you should ever have access to your checking account is from a credit card to prevent identity theft and having money stolen from you.
What’s happening today is a lot of younger people are just using debit cards or cash, which are both very prone to identity theft and physical theft. It’s important to recognize that credit cards have insurance which covers you in case fraudulent purchases are made. This means you get all your money back. If someone steals your debit card information, they have direct access to your money, and it’s a lot harder to get it back.
Something else you miss out on if you are only using debit cards or cash, are all the rewards programs that are often offered with credit cards. Some programs offer bonus points that you can put towards the cost of plane tickets, or you can buy different goods and services, or just get cash back to pay down your credit card. It’s a nice benefit that can really pay off if you get the right program for your needs.
Having a credit card just makes sense in today’s digital world, to help protect you from identity theft, to safeguard your money, and to take full advantage of the purchases you make in the form of extra benefits offered by rewards programs.
Until next time, enjoy!
Gary