A growing share of Americans are making credit decisions before they ever fill out an application, and many of those decisions are based on assumptions rather than experience.
That is the central takeaway from a new PYMNTS Intelligence report, “Consumer Credit Economy: Strategy vs. Spontaneity—Navigating the Great Credit Divide,” published in September. The research looks beyond spending habits to examine how perceptions about credit approval, flexibility and control are shaping how consumers use credit and, in many cases, whether they use it at all.
The report finds that consumer credit plays a dual role in daily life. It is a planning tool for scheduled expenses and a backstop for unexpected ones. Yet many consumers underestimate their chances of being approved for new credit products. That gap between perception and reality has real consequences. It keeps people from applying, limits access to useful financial tools and leaves lenders with missed opportunities to engage qualified customers. The findings are based on a census-balanced survey of 2,049 U.S. adults conducted in June 2025.
Several data points illustrate the divide:
- 42% of consumers say they doubt they would be approved for a new credit card, nearly three times the actual denial rate among those without cards.
- 53% of consumers report using credit only or mostly for planned purchases over the past 90 days, underscoring credit’s role as a deliberate budgeting tool.
- 22% of millennials say they use credit cards mainly for spontaneous purchases, the highest share of any age group, highlighting generational differences in how flexibility is valued.
Beyond these headline numbers, the report reveals a broader story about confidence and control. Younger consumers and those living paycheck to paycheck are more likely to rely on credit for unplanned spending. Older consumers and those with stronger credit scores tend to use credit more strategically, choosing cards based on rewards or benefits and focusing spending on one primary account. This pattern suggests that experience and access shape not just behavior, but mindset.
Income also affects perceptions, though not always as expected. Even among households earning more than $100,000 a year, roughly one-third believe they would probably or certainly be denied a new credit card. Actual denial rates tell a different story. Only 15% of consumers without an active credit card report having been rejected in the past. For most other credit products, denial rates are even lower. The gap points to a psychological barrier that cuts across income levels.
The report also finds that consumers are increasingly willing to pay for credit products that offer flexibility and control. On average, respondents say they would pay a one-time fee of about $99 for a card with premium features such as installment plans, higher limits or enhanced rewards. Interest is especially strong for cards that allow users to choose each month between earning rewards and paying a lower interest rate, or to align payment due dates with paychecks.
Another theme is the importance of credit building. For consumers without an active credit card, improving a credit score is the most common reason cited for wanting one. This motivation extends to other products, including buy now, pay later options, especially among younger consumers.
Taken together, the findings suggest that the biggest challenge in the consumer credit economy is not demand, but perception. Many consumers want more flexible and useful credit tools yet hold back because they assume access is out of reach. Closing that gap will matter for lenders and FinTechs alike. It will also shape how consumers navigate their financial lives in an economy where both planning and spontaneity remain part of the equation.
