Older Americans, particularly those aged 65 and above, exhibit more prudent credit card behavior compared to the general population. A recent LendingTree study analyzing credit reports from the first quarter of 2024 reveals that seniors have a lower average credit card balance of $7,484, which is 10.9% less than the average consumer balance of $8,400. Despite having higher credit limits, senior credit card utilization is significantly lower at 20.5% compared to 34.6% for all consumers. This demographic also boasts a higher on-time payment rate and fewer maxed-out cards. The study also highlights regional differences, with older adults in Alaska, Maryland, and Texas having the highest average balances, while those in South Dakota, Iowa, and Minnesota have the lowest.
Read the full article here.