Demand for credit cards is growing among 50s
Analysis shows that credit cards issued by banks and other financial institutions are more likely to be of interest to people over 55. Let’s compare: 2017 financial institutions have issued 17% of credit cards to people over 55. 2015 this age group accounted for 13% of people who received credit cards; less than one in ten (8%) who received a credit card was over 55.
Traveling abroad also stimulates demand for credit cards
“According to Statistics Lithuania, the number of tourists aged 55 and over has increased by 30% in 5 years. Traveling abroad also stimulates demand for credit cards, as they are commonly used to book flight tickets and overnight stays. Among other things, older people are more likely to shop online, where credit is also available. The number of older people in the portfolio of financial institutions is also increasing due to the possibility to pay by card before salary or pension, ”says Andrius Bogdanovic, director of Marcel.
Jūratė Cvilikienė, Head of the Institute of Finance, notes that senior citizens see credit cards as an instrument for lower costs.
“Residents opt for credit cards, which are also covered with travel insurance. It protects the traveler and his / her family members from financial loss in the event of an accident, and can help prevent additional costs due to flight delays, lost luggage, damage to third parties, etc. In addition, residents who travel abroad more often, and especially with their families, see credit cards as an opportunity to spend less on travel insurance, which would be more expensive to purchase each time, ”says J. Cvilikienė.
The head of the Institute of Finance
Predicts that not only credit cards but also all new financial services and smart solutions will grow in popularity among the elderly. “The younger generation is already skilled, using smart tools, and now these trends are becoming more pronounced among older people. Internet services, smart solutions open up opportunities for older residents – consumers can compare prices in different stores, buy cheaper goods abroad. mobile apps that help you plan and control your finances, ”said J. Cvilikienė, Head of the Swedbank Institute of Finance.
According to the analysis, most credit cards in 2017 issued to residents aged between 26 and 35 years. This is the financially most active age group, which also uses other types of credit. Just over 23% of credit cards were issued last year to consumers aged 36-45, similarly to those aged 46-55.
Mr Bogdanovich recalls that signing a credit card contract creates financial obligations. Therefore, before applying for a card, it is helpful to assess your financial health and weigh your options.