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New subprime accounts power credit card growth

Millennials and those with no credit history are getting new credit cards

Summary

New subprime accounts, driven by millennials, power growth

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The wave of growth in credit card accounts continued in the first quarter of 2015, up 14 percent over the previous year period. The total of 314 million accounts is the largest since late 2008, when the recession led issuers to slow the credit fire hose to a trickle.

There was growth in all categories (subprime, prime and super-prime), the American Bankers Association’s September 2015 Credit Card Market Monitor found, but that was fueled by a 28 percent increase in new subprime accounts. For the first time in three years, the total number of subprime accounts reached 60 million.

As the economy improves, banks are opening the door “for millennials with no credit history as well as those who have had difficulty managing credit in the past,” said James Chessen, ABA’s chief economist.

Credit card accounts on the rise in 2015
 

 

 

See related:How a new credit card affects your credit score, Credit card us and availability statistics, More infographics

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Credit Card Rate Report Updated: May 20th, 2019
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15.61%
Airline
17.50%
Cash Back
17.60%
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17.62%
Student
17.79%

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