Are Millennials Killing Credit?

May 29, 2015

The economy is slowly bouncing back, and as it does consumers have become more concerned with their credit and not overspending. For many, the best money management comes with avoiding the use of credit cards at all. Researchers are seeing this particular strategy in an unlikely population – the Millennials.

A recent survey of 1,000 young adults by, revealed that a third of Millennials are avoiding credit cards and choosing debit cards instead. Millennials site a fear of becoming trapped by spending money they don’t really have, concerns about student loan debt, and their ability to get a job in a recovering economy. About 36 percent of individuals between the ages of 18 to 29 years old state that they have never owned a credit card. Some parents believe that the reluctance to use credit cards is a positive trend for Millennials, saying that 18 is too young to carry such responsibility anyway.

While some parents are thankful that their offspring have chosen to forego credit cards, others think that avoidance of credit all together will hurt young adults when they want to make large purchases like homes or vehicles. Lenders and dealers require some sort of credit and some may out right refuse applicants that don’t have at least a few years of proven credit history. analyst, Matt Schultz, comments that the survey’s results show a major shift in the way young adults are choosing to spend money, and that the credit card industry may be changing as well. Schultz notes that in the 1990’s, credit card companies would often give out t-shirts and other products in exchange for signing up for cards, but these tactics are quickly fading away. This could be greatly due to the Credit CARD Act which requires any person under 21 to show proof of income or get a co-signer in order to receive a credit card. Regardless, Millennials are leaning more towards debit and prepaid cards.

Although waiting to use credit cards is a responsible decision, Millennials are making themselves more susceptible to fraud by only depending on debit cards, continues Schultz. If a credit card is stolen, card companies can easily wave the charges, but if debit cards are taken, then the owner’s money is taken and may not be returned for several days.

Instances of fraud and identity theft can wreck even a responsible card owner’s credit. When this happens, consumers turn to bad credit merchants to help fix their credit. is an expert payment processor that creates and manages bad credit merchant accounts.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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