The Credit Economy: How Younger Consumers Make Credit Decisions

Households are borrowing more money, meaning it is critical to understand the mechanics of how consumers make credit decisions.

As household debt increases, it’s essential to grasp the dynamics behind consumer credit decision-making processes. Diverse financial pressures across generations result in distinct preferences for credit options.

While the allure of rewards motivates established and financially stable consumers to juggle multiple credit cards, younger demographics like millennials and Gen Z are increasingly drawn to Buy Now, Pay Later (BNPL) services, even in the absence of rewards incentives. What factors are fueling the surge in BNPL popularity with the younger crowd?

This analysis, a joint effort by PYMNTS and i2c, delves into the credit usage patterns and mindsets of younger consumers specifically.