Why Baby Boomers and Seniors Are Sticking to Traditional Credit

When it comes to credit usage, baby boomers and seniors have clear preferences. A recent PYMNTS Intelligence report, “Boomers Are Leaving the Credit Market,” highlights that 77% of boomers and seniors have active credit cards—making them one of the largest user groups of traditional credit. However, despite their high engagement with credit cards and store cards, they have little interest in exploring new credit products like Buy Now, Pay Later (BNPL).

Boomers and Seniors Avoid 'Buy Now, Pay Later'

While younger generations have increasingly adopted BNPL services, boomers and seniors remain largely uninterested. Only 4.5% of this demographic has an active BNPL account, compared to 18% of millennials and 16% of bridge millennials. This significant gap underscores their preference for traditional credit options over newer, alternative payment methods.

Satisfied With Existing Credit Options

Boomers and seniors are not actively seeking new credit products. For instance, just 4.1% of boomers without an auto loan are interested in getting one, compared to 12% of millennials. The disparity is even greater with personal loans, where only 3.9% of boomers show interest, versus 17% of Gen X and 23% of Gen Z.

Perhaps the most telling statistic is that only 1.6% of boomers and seniors without a credit card are interested in obtaining one. This suggests that this group is content with their existing financial tools and sees little need for additional credit.

Credit Usage Patterns Differ

Despite their high credit card ownership, boomers and seniors tend to use them less frequently than younger consumers. For example, 46% of boomers and seniors used credit to pay for a restaurant meal in the past 90 days, while 50% to 56% of younger generations did the same.

This cautious approach extends to other spending categories like groceries, furnishings, and appliances, where older consumers are more likely to use debit cards or cash. This trend indicates a preference for financial stability and avoiding unnecessary debt.

What This Means for Lenders

For financial institutions looking to engage with this demographic, introducing new credit products may not be the most effective strategy. Instead, enhancing existing offerings—such as providing better rewards or lower interest rates on credit cards—could be a more compelling way to retain and attract boomers and seniors.

Understanding these preferences is key to serving this market effectively and ensuring that credit solutions align with their financial habits and priorities.

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