A widening divide is developing among young consumers, as those with good credit are increasingly taking on credit cards, while those with bad credit are taking on less, according to a TransUnion study
A widening divide is developing among young consumers, as those with good credit are increasingly taking on credit cards, while those with bad credit are doing without them, according to a TransUnion study released Oct. 8.
The trend is consistent with all consumers: More people of all ages with good credit have cards compared to the same group during the Great Recession. Among people with bad credit, it’s the opposite: Fewer have cards than had them before the recession.
The contrast is particularly marked among consumers in ages 20-29.
Among consumers in that age bracket who have good credit, almost two-thirds have an active card today, while just over 35 percent of that age group with bad credit has a card. That’s an increase for those consumers with good credit of almost 10 percent in the past nine years, and a decline during the same period of almost 10 percent for those with bad credit.
The statistics were generated from TransUnion’s database of consumer credit information from 2005-2014. TransUnion is one of the three major credit bureaus in the United States.
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