As older Gen Z adults become more financially established and have more expenses, they’re earning credit card points on large transactions such as housing, car payments, and student loans, according to a survey conducted by LendingTree in collaboration with BuzzFeed News.
Though many Gen Z adults still prefer other forms of payment over credit cards, companies are launching new credit card programs that incentivize young people to use credit cards for their rent and other large expenses. Bilt, a new credit card with a median user age of 29, processes over $5 billion in rent annually.
But the penalties for losing your job or suddenly being unable to make a payment are steep, according to Jacob Channel, a senior economist at LendingTree. The average credit card interest rate is currently 23.55%, and a separate LendingTree survey found that about 45% of Gen Z adults live paycheck to paycheck. Ultimately, Channel said, he “wouldn’t recommend it.”
“I honestly, overall, feel like credit card rewards are just a big scam,” said Daniel Heppner, a 25-year-old software developer in Seattle who charges his $1,700 monthly rent to his credit card. The fact that rewards are funded in part by interest from people who cannot pay their bills is “really inequitable,” he said, but the way commerce works today, credit cards are “not something that I can boycott.”
Source: https://www.buzzfeed.com/alexalee1/french-protests-retirement-age-trump-indictment-march-21