Over 50s manage money with multiple credit cards

The over 50s own more plastic than any other age group, with one in two (49%) saying they use more than one credit card to manage their finances and 7% say they carry five or more credit cards in their wallets.

Research from Saga Platinum Credit Card reveals almost a quarter (23%) of over 50s do not use any credit cards in comparison to over a third (34%) of under 50s.

Of those over 50s that hold more than one card, a third say they use all their cards in the same way, whereas a fifth (20%) use their cards occasionally as an extra financial ‘cushion' when they need some extra credit and another fifth (19%) just use a credit card for buying big-ticket items. In contrast one in ten (9%) under 35s use one credit card until they reach their spending limit and then switch to another card, compared with just 2% of over 50s.

The over 50s are much less likely to incur late payment fees than younger credit card users. Nearly three quarters (73%) of people aged 50 and over have never missed a credit card payment deadline in their lifetime. In contrast, one in two (47%) under 50s have missed a credit card payment at some point, and 8% of under 35s say they regularly miss payments.

With so many people carrying more than one credit card there is a worrying lack of knowledge about the impact multiple credit cards can potentially have on people's credit ratings. Over a third of people (36%) believe having multiple credit cards can't have any impact on their credit rating, while a quarter of people think having several credit cards can actually improve their credit rating.

The majority of the over 50s (69%) are not worried about the impact owning more than one credit card has on their credit rating, but one in ten (9%) admit they are concerned.

Andrew Goodsell, Chief Executive, Saga Group, commented: "The over 50s are much wiser when it comes to using credit cards, not exceeding their credit limit or missing payment deadlines. Choosing a card with a fair order of payment, is one of the most effective ways of managing your credit card spending, as people can be sure that they are paying the most expensive debt back first2, which is reassuring in the current tough financial climate."