Older Britons more aware of credit card protections

During economic downturn, purchase protection more important

By UK CreditCards.com

Older Britons are taking advantage of the insurance that credit cards offer to protect themselves during the economic downturn, according to new research.

A survey by Saga found that just less than half of the UK population is using plastic for big purchases. One of the benefits of charging big purchases is because if a retailer goes out of business, and the item costs more than £100 and malfunctions, consumers will be refunded by their card providers.

In the over-50 age group, however, the number of cardholders who are aware of these consumer protections increased to nearly six in 10, which Saga suggests is a sign that these consumers are more educated about the pros and cons of using credit cards.

"The credit crunch has affected people in a number of ways, and as a result they have become more wary, choosing brands they trust and using credit cards as they provide added protection in uncertain times," commented Andrew Goodsell, Saga chief executive.

Survey respondents also cited other reasons for using credit cards, including more than three out of 10 who mentioned the rewards they receive for doing so.

Published: 10 March 2009