The Federal Reserve has released data credit card use. The data indicates that many Americans under the age of 35 are reluctant to own or use a credit card. Such reluctance could hinder the ability to document credit history.

Credit history is an important factor in the ability to qualify for a mortgage. The use of credit cards has helped young people develop a credit history that can last a lifetime. Making small purchases and paying the card balance each month can make a big difference.

Many young people are far more likely than others to eschew credit cards. These young Americans, sometimes referred to as millennials, show concern that credit card bills can get out of hand. Many have college loans to repay and do not want to carry more debt.

While credit card companies say that their operations are very active, fewer young people are signing on. They seem to be deterred by laws passed in the financial crisis. Those laws make it much more difficult to declare bankruptcy. Furthermore, student debt is not forgiven in bankruptcy.

Homeownership is a very good way to build net worth and financial equity. Without a strong credit history, it is far more difficult to qualify for a mortgage. Owning and using a credit card sensibly can be an answer.

Young people should consider owning one credit card. A Visa, MasterCard or American Express credit card can be an asset. Apply for a card and set a low credit limit. Five hundred dollars is a very reasonable limit to start. Set a budget and stick to it.

Use the card for simple purchases each month such as in the supermarket. Small food purchases will be easy to pay at the end of the month. When the invoice arrives, look it over carefully to be sure that there are not incorrect or unusual charges. Pay the invoice on time each month and soon your credit score will skyrocket… and that’s a good thing if you want to own a home.