Millennials are smartly choosing cash over plastic

Millennials are accused of a lot of things: being self-entitled, lazy and obsessed with social media are among some of the top offenses. But previous generations have to give them credit for one thing – young Americans are choosing to live without credit cards.

By the end of 2012, 16% of consumers between 18 and 29 didn’t have a single card. That’s double the number that chose to go without in 2007.

After watching previous generations get boggled down by “bad” debt, this new generation shy’s away from it. Those with a card have $1,000 less debt than others.

What are they turning to then? Debit cards and pre-paid cards. These cards usually work everywhere a credit card would, but users are spending money they already have.

As a result, 11.2% of those 18-29 years old have FICO scores of 760+.

It is important to note that this generation does carry another massive form of debt: student loans. The average amount of student loan debt for a 4-year degree is nearly $30,000.

If you are part of this generation with a lower FICO score that you are trying to improve, there are steps to take. They include responsible borrowing and making all monthly payments on time. One way to do this is with a car title loan.

Car title loans, also called auto equity loans, are short-term loans based on the value of the borrower’s vehicle. They can range from a few thousand dollars to $20,000+, depending on the borrower’s needs. They feature low interest rates and flexible repayment options. And best of all, by making monthly payments on time, the borrower is able to improve his or her score throughout the length of the loan. Many borrowers decide to take out second or third loans for this reason alone.

Don’t let debt get you down; if you have a high-interest credit card, you could pay it off with a low-interest car title loan, and then pay off your loan in monthly installments while improving your credit score.

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