Two-fifths (39%) of Generation Z credit card holders say they pay their balance off in full every month, according to a survey.
More than half (59%) of 18 to 24-year-olds surveyed said they have a credit card, with three in 10 (28%) saying they got one specifically to build up their credit score.
A quarter (24%) took out a credit card as a way of helping them to manage their spending and budgeting.
Nearly a quarter (23%) opted for a credit card because of linked rewards, while just over a fifth (22%) took one out so they could be covered if anything went wrong with their purchase, according to the research from MoneySuperMarket.
Under the Consumer Credit Act, credit card providers can be held jointly liable with the retailer if something goes wrong with a purchase costing between £100 and £30,000.
Clearing a credit card balance in full every month helps holders to avoid paying interest on their spending.
A quarter (25%) of Gen-Z credit card holders said they pay off as much as they can every month and around one in six (16%) just pay the minimum.
The survey of 2,000 people also found that many young adults are wary about debt, with 29% feeling uncomfortable about borrowing over longer periods of time.
A fifth (21%) attributed their feelings of wariness around borrowing to having grown up in the aftermath of the global financial crisis.
Nearly as many (19%) felt uncomfortable about borrowing because they thought there was no prospect of them being able to repay the money in their current circumstances.
Jo Thornhill, money expert at MoneySuperMarket, which has partnered up with some social media influencers, said: “When used sensibly, credit cards can provide a flexible alternative to other methods of payments, while building a credit rating at the same time. It’s reassuring that so many 18 to 24-year-olds have credit cards for the principal purpose of building their credit scores.
“However, what we’ve also found is that for many Gen-Zs a lot of myths and misunderstandings abound about credit cards. It’s not uncommon, for example, to hear people say that credit cards are only for rich people, and that you need a certain amount of money to open an account.”
She added: “With the support of our social media influencers Sul, Talk Twenties, Thrifty Londoner, and Alice Tate, we’re aiming to dispel some of the common myths held about credit cards.”