Young adults, in particular, might value credit in case of emergency because it provides a crucial financial safety net to manage unexpected expenses, such as medical bills, car repairs, or sudden loss of income. This access to credit allows them to cover urgent costs quickly without depleting limited savings. Furthermore, using credit responsibly helps young adults build a positive credit history, which is important for future financial opportunities, including rental applications, loans, or buying a home. Many young adults lack sufficient emergency savings, making credit even more vital as a fallback option during financial stress or crises. However, reliance on credit also carries the risk of debt accumulation if not managed carefully, especially given that younger generations often face challenges like job instability and lower financial literacy.
