According to a recent Gallup survey, credit cards have become the primary means of making purchases for most Americans. Seventy-six percent of all consumers have a credit card and 43 percent have multiple cards. This has become the main way people gain immediate cash and credit.

Forty-one percent of the folks with credit cards indicated they regularly use the cards for short-term loans (by not paying off the monthly balance), even though they realize they pay a fairly high interest rate.

This way of accessing money is a fairly recent trend and used primarily by younger consumers, not senior folks.

Seniors will use credit cards, but rarely if ever carry a balance. You must remember that they are the Cash & Carry generation. To this day they prefer to pay by cash or check. Most seniors do have credit cards (like the Gallup survey indicates), but they don't like to carry a balance and will pay off all charges in full each month.

Paying cash applies to both big ticket items as well as small everyday purchases. Seniors were raised on the idea of saving up until they could afford to pay for their purchases. I have had seniors write personal checks for over $100,000 just as quickly and easily as they could for $100.

Seniors are not "wishful" shoppers or window shoppers. When they are looking at your goods, they already know they can afford them; either by cash in hand or favorable credit terms pre-arranged from their own local bank. Never underestimate the buying power and desires of seniors.

Companies need to note this senior preference for paying in full at the time of purchase. Credit terms are nice, but don't presume the seniors want that option. Younger folks usually do, but not most seniors. Seniorized Factoid: Forget clients with credit problems, sell to seniors.

Published: September 25, 2002

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