Money 
Credit cards are a common financial tool among millennials, many of whom came of age during the 2008 financial crisis and have since navigated rising costs of living, student loan debt, and shifting economic conditions. According to June 2025 data, millennials carry an average of $6,961 in credit card debt, making them the second most indebted generation after Generation X. [1] Experian, "Average Credit Card Debt by Age" https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/
To better understand how millennials are using credit cards today, a survey of 1,069 adults on behalf of Self sought to examine millennial credit card habits, from how they manage balances to the factors that influence their borrowing decisions.
Key statistics
- Millennials carry an average of $6,961 in credit card debt as of June 2025, making them the second most indebted generation after Generation X ($9,600).
- 2025 marks the first year millennials have overtaken baby boomers in average credit card debt.
- As of 2025, the average FICO credit score among millennials is 689, the second-lowest of any generation.
Key survey findings
- The majority of millennials (94.6%) have at least one credit card, with an average of 2.5 cards each.
- Credit cards are the primary payment method for 45.2% of millennials, compared to 35.1% of people in other generations.
- Building a credit score (29.3%) and earning rewards (29.1%) are the top reasons millennials choose credit cards over other payment methods.
- 44.3% of millennials regularly use credit cards to cover expenses they otherwise couldn’t afford, and 5.8% say they use credit cards because they do not have enough money in their bank account to cover purchases.
- More than four in five millennials (80.2%) say credit card debt has had some impact on their mental health, with 33.6% reporting a major impact.
How do millennials use their credit cards?
Data from survey respondents found that the majority of millennials (94.6%) have at least one credit card. This is considerably higher than the percentage of people across all other generations with a credit card (57.8%).
Millennials have 2.5 credit cards on average
Millennials have an average of 2.5 credit cards each, with more than half (53.6%) reporting that they have between two and four cards. Just over a quarter (25.9%) have only one, and a small percentage (3.1%) have more than six different credit cards.
| The number of credit cards millennials have | |
|---|---|
| Number of credit cards | Percentage of millennials |
| 1 | 25.9% |
| 2-4 | 53.6% |
| 4-6 | 7.9% |
| 6-8 | 2.2% |
| More than 8 | 0.9% |
| None | 9.4% |
How often do millennials use credit cards?
Of the millennials surveyed, 40.6% said they use credit cards a few times a week to make purchases, while 21.6% use them every day. Only 8% of millennials said they rarely use their credit card to make purchases.
Credit cards are the primary payment method for 45.2% of millennials
Credit cards are just one of the many payment options available for everyday transactions, but 45.2% of millennials say that a credit card is their primary payment method for typical monthly purchases. Almost half of millennials (48.3%) use credit cards for between 50% and 74% of their purchases, while 17.6% use them for more than 75% of their purchases.
The next most common payment method among millennials is debit cards, with 31.1% reporting them as their primary payment method, followed by bank transfers in third place (14.3%).
Across all other generations, debit cards are more popular, with 50.2% of people in other age groups opting for debit cards as their main payment method, with credit cards at 35.1%.
| Millennials’ primary payment methods for typical transactions and purchases | |
|---|---|
| Primary payment method for typical monthly transactions and purchases | % of millennials |
| Credit card | 45.2% |
| Debit card | 31.1% |
| Bank transfers | 14.3% |
| Digital wallets (eg. PayPal, Venmo) | 4.7% |
| Cash | 3.6% |
| Checks | 1.0% |
Why do millennials use credit cards instead of debit cards or cash?
Credit card use is popular among millennials, but why do people in this age group use them over other payment types like debit cards or cash?
The most common reasons millennials use credit cards are for building their credit score (29.3%) and earning rewards (29.1%). Additionally, 82.3% of millennials say they have opened a credit card specifically to build their credit score, and 88.3% have a rewards credit card that offers benefits like cash back, points, or air miles.
A small percentage (5.8%) say that they use credit cards because they don’t have enough money in their bank account to cover purchases. Another study, by Credit One Bank, found that 71% of millennials do not have six months' worth of expenses in savings, highlighting a lack of financial security for some in this age group. [2] Credit One Bank, "Emergency Savings Habits in 2025: Cash, Credit Or Nothing At All" https://www.creditonebank.com/articles/emergency-savings-habits-in-2025-cash-credit-or-nothing-at-all
| Why millennials use credit cards instead of debit cards or cash | |
|---|---|
| Why millennials use credit cards instead of debit cards or cash | % of millennials |
| Building my credit score | 29.3% |
| Earning rewards | 29.1% |
| Fraud protection | 13.8% |
| Convenience | 11.8% |
| I do not have enough in my bank account to cover purchases | 5.8% |
| I don't use a credit card instead of a debit card or cash | 10.3% |
Using credit cards for emergencies
Just over half of consumers from all age groups (51%) say they would rely on a credit card to cover an emergency expense of $500 or more. 25% of Gen Z and millennials say they would max out their credit cards to cover the costs of a financial emergency. [2] Credit One Bank, "Emergency Savings Habits in 2025: Cash, Credit Or Nothing At All" https://www.creditonebank.com/articles/emergency-savings-habits-in-2025-cash-credit-or-nothing-at-all
While not necessarily for emergencies, 44.3% of millennial survey respondents say they regularly use credit cards to cover expenses that they couldn’t otherwise afford. This is a much higher proportion than among respondents from other generations (14.2%).
Average millennial credit card debt
According to data from Experian as of June 2025, millennials have an average of $6,961 in credit card debt. This means millennials have the second-highest average credit card debt across the generations, after Generation X ($9,600). 2025 is the first year that millennials have overtaken baby boomers in the average amount of credit card debt.
| Average credit card debt by generation | |
|---|---|
| Generation | Average credit card debt |
| Gen Z | $3,493 |
| Millennials | $6,961 |
| Gen X | $9,600 |
| Baby boomers | $6,795 |
| Silent Generation | $3,445 |
Source [1] Experian, "Average Credit Card Debt by Age" https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/
How millennials manage their credit cards
Of those surveyed who have a credit card, almost four in ten millennials (39%) report paying their credit card balance in full each month, while 35.7% pay more than the minimum payment but do not clear the full balance. A further 19.5% pay only the minimum payment each month, and 5.8% report sometimes missing payments altogether.
A 2024 study by Forbes found that 34% of millennials had missed a credit card payment in the previous 12 months, making them the most likely generation to have done so. [3] Forbes, "Credit Card Usage Trends by Generation" https://www.forbes.com/advisor/credit-cards/credit-cards-trends-by-generation/
| How millennials typically manage their credit cards | |
|---|---|
| How millennials manage their credit cards | Percentage of respondents |
| Pay the full balance every month | 39.0% |
| Pay more than the minimum payment, but not the full balance | 35.7% |
| Pay the minimum payment only | 19.5% |
| Sometimes miss payments | 5.8% |
Carrying balances
Among survey respondents, 83.6% of millennials say they have carried a balance on a credit card for more than three months on at least one occasion.
Bankrate data from a December 2025 survey shows that 53% of millennial credit cardholders regularly carry a balance from month to month, the same as Gen Xers (also 53%), but more than baby boomers (43%) and Gen Zers (40%). [4] Bankrate, "2026 Credit Card Debt Report" https://www.bankrate.com/credit-cards/news/credit-card-debt-report/#emergency-expenses-leading-cause-of-debt
According to our survey, as well as carrying balances, three-quarters (75.8%) of millennials say they have paid a late fee on a credit card at least once. 46.2% have paid a late fee only once on a credit card, while 29.6% have paid a late fee more than once. This is a higher proportion compared to all other generations, of whom only 31.3% have ever paid a late fee on their credit card.
85.7% of millennials feel confident about managing credit card debt
When asked how confident they feel about their ability to manage credit card debt, the majority of millennial respondents expressed some level of confidence. About one-third (34.1%) said they feel very confident, while 51.6% said they feel somewhat confident. A smaller share reported lower confidence levels, with 6.5% saying they are not very confident and 7.7% saying they are not confident at all.
| How confident millennials feel about their ability to manage credit card debt | |
|---|---|
| How confident millennials feel about their ability to manage credit card debt | Percentage of respondents |
| Very confident | 34.1% |
| Somewhat confident | 51.6% |
| Not very confident | 6.5% |
| Not confident at all | 7.7% |
Steps millennials are taking to manage credit card debt
The majority of millennials feel confident in their ability to manage credit card debt, but what steps have they taken to manage it? Almost one in four (37.1%) have used a personal loan to consolidate debt, and 32.1% have used a balance transfer credit card.
| Steps millennials have taken to manage debt | |
|---|---|
| Steps millennials have taken to manage debt | Percentage of respondents |
| Used a personal loan to consolidate debt | 37.1% |
| Used a balance transfer credit card | 32.1% |
| Asked for advice from a credit counselor | 26.1% |
| Negotiated a payment plan with the card issuer | 12.1% |
| None of the above | 22.8% |
Data note: Respondents could choose more than one answer.
Millennials’ average credit score
As of 2025, the average FICO credit score among millennials is 689, a slight decrease from 691 in 2024. Compared to other generations, millennials have the second-lowest average credit score, while Gen Zers have the lowest (678).
Among the millennials surveyed on behalf of Self, 7% said they do not know what their current FICO credit score is.
| Average FICO Credit Score by Generation | ||
|---|---|---|
| Generation (Age) | 2024 | 2025 |
| Generation Z (18-28) | 681 | 678 |
| Millennials (29-44) | 691 | 689 |
| Generation X (45-60) | 709 | 709 |
| Baby boomers (61-79) | 746 | 747 |
| Silent Generation (80+) | 760 | 760 |
Source [5] Experian, "What is the Average Credit Score in the U.S?" https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/
Credit card utilization by generation
The term credit utilization ratio refers to the amount of available credit someone is using, expressed as a percentage. Data from 2024 shows that, on average, Gen Zers use the highest proportion of their available credit at 37%, while millennials are only slightly behind with a credit utilization ratio of 36%.
The average credit utilization ratio by generation decreases as age increases, with those in the Silent Generation only using an average of 12% of their available credit.
| Generation | |
|---|---|
| Generation | Average Credit Utilization Ratio |
| Generation Z | 37% |
| Millennials | 36% |
| Generation X | 34% |
| Baby boomers | 21% |
| Silent Generation | 12% |
Source [6] Experian, "Average Credit Card Debt Increase 3.5% to $6,730 in 2024" https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
The impact of credit card debt
Credit card debt can impact people in a number of ways, both financially and mentally. Equifax points to a strong connection between debt and mental health, people in debt are more likely to experience stress, depression, and lack of sleep. [7] Equifax, "How Can Debt and Money Issues Impact Your Mental Health?" https://www.equifax.com/personal/education/credit-cards/articles/-/learn/impacts-debt-mental-health
Among survey respondents, 28.1% of millennials think people in their age group face significantly more challenges managing credit card debt than previous generations did. Of those in other generations, a smaller percentage (16.6%) think that credit card debt is significantly more challenging for millennials.
Money Management International, a national non-profit credit counseling agency, found that in 2024, millennials were the age group most asking for help with debts, as they face rising rent costs, student loan debt, and high interest rates. People in this age group accounted for 43% of new clients seeking debt counseling services. [8] https://www.cbsnews.com/philadelphia/news/millennials-credit-card-debt-financial-counseling/
Almost half of millennials say credit card debt has made them stressed
Of the millennials surveyed, 46.6% said that credit card debt had had some impact on their mental health, while 33.6% said it had led to a major impact on their mental health.
More specifically, 46.4% of millennials have experienced feelings of stress in relation to credit card debt, 39.9% have felt worried, and 27.5% have lost sleep over it.
| How credit card debt has made millennials feel | |
|---|---|
| How credit card debt has made millennials feel | Percentage of respondents |
| Stress | 46.4% |
| Worry | 39.9% |
| Lack of sleep | 27.5% |
| Shame | 21.8% |
| Helplessness | 15.4% |
| Depression | 13.6% |
Data note: Respondents could select more than one answer.
Methodology
A survey of 1,069 adults was carried out on behalf of Self Financial in March 2026 to understand millennial credit card habits, including how often they use them, how they manage credit card debt, and how their behaviors compare to people in other generations. The breakdown of respondents was as follows:
Gender:
- Female: 63.7%
- Male: 35.7%
- Non-binary: 0.3%
- Transgender: 0.3%
Age:
- Gen Z: 9.2%
- Millennial: 80.3%
- Gen X:
- Baby Boomer: 1%
- Silent Generation: 0.4%
Sources
- [1] Experian, "Average Credit Card Debt by Age" https://www.experian.com/blogs/ask-experian/research/credit-card-debt-by-age/
- [2] Credit One Bank, "Emergency Savings Habits in 2025: Cash, Credit Or Nothing At All" https://www.creditonebank.com/articles/emergency-savings-habits-in-2025-cash-credit-or-nothing-at-all
- [3] Forbes, "Credit Card Usage Trends by Generation" https://www.forbes.com/advisor/credit-cards/credit-cards-trends-by-generation/
- [4] Bankrate, "2026 Credit Card Debt Report" https://www.bankrate.com/credit-cards/news/credit-card-debt-report/#emergency-expenses-leading-cause-of-debt
- [5] Experian, "What is the Average Credit Score in the U.S?" https://www.experian.com/blogs/ask-experian/what-is-the-average-credit-score-in-the-u-s/
- [6] Experian, "Average Credit Card Debt Increase 3.5% to $6,730 in 2024" https://www.experian.com/blogs/ask-experian/state-of-credit-cards/
- [7] Equifax, "How Can Debt and Money Issues Impact Your Mental Health?" https://www.equifax.com/personal/education/credit-cards/articles/-/learn/impacts-debt-mental-health
- [8] https://www.cbsnews.com/philadelphia/news/millennials-credit-card-debt-financial-counseling/
