Millennials have not taken kindly to credit cards like the generations that preceded them, studies have shown. It’s not cash—it’s debit cards. For many young adults, choosing to avoid a credit card means choosing to avoid the potentially damaging consequences of high interest rates and overdue balances. In a nutshell: Why borrow when you’re just going to pay it back?
On Thursday the Consumer Financial Protection Bureau, the government agency tasked with the sole mission of protecting consumers, announced it would be looking into alternate ways of determining consumers’ creditworthiness by asking the public for feedback about having alternative data for producing a credit score—instead of typical consumer credit-building, which relies on things like student loan repayment and credit cards.