Credit Behavior of New, Young & Low-income Consumers

Tuesday, March 20, 2018 - 3:00pm

Credit Behavior of New, Young & Low-income Consumers

Clarity’s data shows that young (18-25-year-olds), new-to-market, and low-income consumers (net income less than $20,000 a year) are receiving financial services, just not in the prime lending space. Using a subsample of approximately 5 million loans in 2016, Clarity found that close to 1 million loans were made to a low-income borrower. This translated to 22% of the sample. Close to half a million loans were made to 18 to 25-year-olds. We will examine if these new-to-market consumers’ financial behavior and trends regarding loan types, frequency of use, credit utilization and payment performance show any generational differences when compared to other age and income groups.