When most consumers prefer credit cards with no yearly fees, a new survey indicates younger generations might be more prepared to cover them so as to reap benefits that are significant.
Over half of consumers66%–take under account if or not a card has an yearly fee when deciding to employ for this card, and 60 percent said with no yearly charge is a significant element in their decision procedure. Among respondents who were now considering switching charge cards, 54 percent said that the motive was to avoid paying an yearly charge –the No. 1 reason given. Over a third of respondents –37 percent –have closed a credit card since it’s an yearly charge.
Interestingly, about a third of respondents that picked a card with an yearly fee started to regret it following the one-year markers of getting the card.
Survey respondents included article millennials (those involving 18-21), millennials (people involving 22-36), Gen X (people involving 37-52), baby boomers (people involving 53-71) and pre-boomers (those 72 and elderly ).
Whether they were happy with their yearly charge cards or not, younger generations were far prone to take those kinds of cards in their pockets. Approximately 59 percent of post-millennials and 52 percent of millennials have credit cards with annual fees, whereas 47 percent of Gen Xers, 43 percent of pre-boomers and 41 percent of people have them.
Younger consumers were less inclined to change to some other card to avoid paying an yearly charge. Among respondents, 78 percent of pre-boomers believed making a change to prevent an yearly fee, followed by 67 percent of baby boomers and 58 percent of Gen Xers. One of millennials, less than half–46 percent –believed making a change to avoid annual fees, combined with 41 percent of post-millenials.
But a lot of those who pay yearly fees find the charge to be well worth it. In reality, 52% mentioned cash-back benefits and 48% mentioned travel advantages and benefits as their motives for picking a card with an yearly fee.