Earning rewards is even better.
So, it’s no wonder CNBC reports that nearly 70% of millennials want credit cards that offer rewards like cash back, points and miles, according to a new survey by CreditCards.com.
The trouble is, those rewards could cost them.
Financial experts say it’s because they’re focusing on the shiny new thing instead of paying off old debts.
Results show millennials are more likely than older folks to be dazzled by sign-up bonuses and travel credits than more practical perks like 0% interest on new purchases for 18 months and 0% interest on balance transfers, according to Forbes.
An industry analyst for CreditCards.com says the logic is simple.
Millennials lean towards sign-up bonuses in the form of airline miles, hotel points or cash back so they can put the perks to good use in the immediate future.
But they’re forgetting about what’s left behind.
43% of all millennials carry a monthly balance on their credit card.
Financial experts say carrying a balance could wipe out the value of your rewards because rewards credit cards have higher rates on average.
So, yes, millennials should be making smarter choices when card shopping.
But there’s no denying a 0% interest rate doesn’t sound as sexy as a free trip!