Prepaid Cards Helping Manage Finances, But Not Building Credit

A recent Adage article explored the growth and prominence of prepaid cards amongs the Millennial generation. Included was an expert from a TD Bank study which revealed that “56% of Millennials surveyed said the ability to track spending is one of the main benefits of reloadable prepaid cards, as opposed to 46% of people overall.”  While it makes sense to help manage budgets in their younger years, this method of “budgeting” could cause issues for Millennials not too far down the road as the requirement of strong credit scores are needed for purchases like insurance, cell phone plans, employment, automobiles and homes. It’s in that situation they may wish they would have got a credit card and just used some good ol’ fashion stick-to-itiveness to not live beyond their means, and pay down their credit card balance each month. In our recent survey of End listeners, 35% of respondents reported having 0 credit cards.