Older generation ‘knows more about credit cards’ than younger people

Research from GoCompare.com has revealed how there is a distinct generation gap when it comes to spending know-how.

Half of all adults in the UK (51 per cent) aged 65 or over said they used a credit card to purchase their holiday, compared to less than a quarter (23 per cent) of 18 to 24 year olds.

The older generation may be right when it comes to paying for their holiday with plastic, as in doing so they will be covered by the Consumer Credit Act, provided they spend between £100 and £30,000. This protects travellers if they buy their vacation on a credit card and if something goes wrong the provider will have to refund the credit card holder. 

However, this may not apply to a holiday bought through a travel agent, which is Air Travel Organisers' Licensing protected, so it is important to keep that in mind.

Senior citizens also appear to know how to use their cards to get the most from their holiday and know when not to use it. For example, 40 per cent of over-65s said they do not use a cash machine abroad, which avoids any withdrawal charges, and 87 per cent of them paid off their credit card bills within a month of returning home.

Surprisingly nearly a third (30 per cent) of 18 to 24 year olds believe that there are no fees for using their credit cards abroad and pay for it when they get home. Meanwhile, the older generation could teach them a thing or two, with 61 per cent of the over-65s knowing what charges and interest rates they would be paying when using their card abroad.

Gocompare.com's credit card expert Matt Sanders said: "It seems that when it comes to credit card use, age really does bring wisdom. The over-65s are the age group who are using their plastic sensibly while on holiday,  securing added protection when booking and when spending abroad."

By James Francis