“Buy now, pay later” options are becoming increasingly popular, but analysts warn of default risks given the lack of credit checks and “opaque” debt reporting. Not being able to check on consumers’ credit history could lead to lenders to underestimate borrowers’ debt levels when assessing new loan applications. There’s also the risk of consumers chalking up more credit card debt in order to pay off their “buy now, pay later” obligations. [CNBC]
72% of Millennials Say Social Media Impacts Their Buying Choices
According to a survey from CreditCards.com from last week, 72% of millennials say social media impacts their buying decisions. This is the most likely age group to be influenced by social media in their spending, followed by 66% of Gen-Z, 49% of Gen X and 45% of baby boomers. Millennials tend to trust posts from their friends and family, with this type of content influencing 38% of millennials when it comes to shopping. Only 20% of millennials report making purchases inspired by posts from celebrities or influencers. [Bankrate]
The Different Directions The “Big Three” Card Issuers are Taking to Get Customers
What’s going on in the minds of credit card issuers like Chase, Citi and American Express these days? They don’t seem to have the same vision of the future for their individual market shares. In fact, they’re besieging entirely different credit card demographics as they search for new customers and attempt to retain existing ones. It’s generally ideal for consumers when banks squabble over the same customers. When issuers relinquish certain customers, however, the competition isn’t as fierce and the offers become less and less outstanding. [The Points Guy]
Wells Fargo Survey Finds Credit Card Users Purged During Covid-19
A Wells Fargo survey reveals customers made major purges during Covid-19. For example, 72% decluttered closets, 29% purged social media friends and 33% simplified finances. The survey also found a few data points surrounding credit card usage: 44% of consumers want cash back features on their cards; 22% want sign on bonuses for cards; 38% want rewards.