Gen Z Carries One Credit Card and Uses It More Than Other Payment Methods

It’s not how many cards consumers have, but how often purchases are put on plastic.

Generation Z may be proving that less is more when it comes to the number of credit cards carried, per the report “Credit Card Use During Economic Turbulence,” a PYMNTS and Elan Financial Services collaboration. Forty-five percent of this demographic only carries one bank-issued credit card. This is far and away not only the generation’s top response, but the top response of any age cohort surveyed.

Reasons behind this limited number of cards carried by Gen Z may vary. They can include a means of budget management or a low credit score being a barrier to accessing financial products.

Across all demographics, Gen Z’s 50% of their total spend being put on a bank-issued credit card during the period represents the highest use across demographics.

These numbers concerning Gen Z’s credit card use are in line with additional PYMNTS research, which found that 52% of this demographic needs to borrow money to make ends meet. Additionally, over a third of the generation said they increased their use of credit cards in the year previous to being surveyed.

They also echoed American Express’ July earnings report, during which CEO Steve Squeri noted on a conference call with analysts that more than 60% of new consumer accounts were held by millennials and Generation Z consumers, with the age group increasing their American Express card spending by 21% year over year.

Gen Z’s reliance on credit cards, be it via one or 20, may reflect the demographic’s financial lifestyle. And, so long as the age cohort struggles to get by, it may be expected that they continue this higher-than-average rate of card use.