The latest TransUnion’s Industry Insights Report found that unsecured credit products, including credit cards and personal loans, which are typically used to fund household expenses and smaller ticket purchases, saw a significant year on year growth in Quarter 1 of 2019:
- Credit card balances grew by 6.6%
- Year on year Bank personal loans and non-bank personal loans saw 7.2% and 11.4% YoY increases, respectively.
- Credit cards and non-bank personal loans saw a large increase in the number of open accounts, up 8.4% year on year for credit cards and 15.8% for non-bank personal loans.
- Bank personal loans saw a jump in originations growth in Q1 2019, up 11.3% compared to the prior year quarter.
These growth trends indicate that consumers are actively seeking new credit as a means to supplement their incomes and meet their obligations.
“Consumers and lenders alike are wrestling with the continued volatile economic conditions. In these difficult economic times, credit can be a critical lifeline for consumers who may be struggling with their expenses. For lenders, it is important that they continue to make credit available to consumers who may need it, but equally important that they are making prudent lending decisions and manage the risks of their own credit portfolios.” Carmen Williams, Director of Research and Consulting reported.
Click here to read more detail about the report.