• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Buy now, pay later plans not shrinking credit card loans, says TransUnion

September 23, 2021 by David Barret Leave a Comment

September 23, 2021

By David Henry

(Reuters) – Borrowers who apply for “buy now, pay later” or other point-of-sale financing tend not to pay down their credit card debts as much as the general population, credit reporting company TransUnion said on Thursday.

The conclusion, from a new study, indicates that credit card lenders might not have lost as much business as suspected during the pandemic to the rise of “buy now, pay later” plans.

“These new forms of financing are growing the credit pie, opening up more opportunities for both consumers and lenders,” said Liz Pagel, senior vice president of consumer lending at TransUnion.

The study looked at credit profiles of more than 4.5 million people who applied for point-of-sale financing from October 2019 through March.

TransUnion found that a smaller portion of people who applied had reduced their card debt, 54%, compared with 60% of the general population. Some 20% increased their card debt by more than half.

Though financial technology companies have lured shoppers https://ift.tt/3q37PWG with the additional ways to borrow, big banks have continued to predict that card lending revenue will increase as card balances rebound from being paid down during coronavirus lockdowns.

The study did not determine how much additional card lending banks lost to “buy now, pay later.”

In a separate TransUnion survey in August, one-third of people who had used a “buy now, pay later” plan said they would have used a credit card had the plan not been available.

Those applying do not appear to be increasing the risk of losses on existing loans, TransUnion said. Delinquency rates on their credit cards six months after their applications were only slightly worse than the general population at 3.2% versus 2.7%.

“It does not look like, at this point, consumers are over leveraging themselves,” Pagel said.

(Reporting by David Henry in New York; Editing by Mark Potter)

Source Link Buy now, pay later plans not shrinking credit card loans, says TransUnion

David Barret
David Barret

Related posts:

  1. Soccer-Poland say no racism in Glik’s bust-up with England’s Walker
  2. Epic Games to shut down Houseparty in October, including the video chat ‘Fortnite Mode’ feature
  3. UK’s slow growth and rising inflation gives BoE headache – PMIs
  4. Bank of England nudges up inflation outlook, split over QE widens

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Watch First-Ever Footage Of A Black Jaguar Mating In The Wild
  • A New Blue Zone? Researchers Find Another Region Where People Live Exceptionally Long Lives
  • LIGO Could Detect Gravitational Waves From An Alien Spacecraft, But There’s A Catch
  • How Outer Space Helps Clouds Form On Earth
  • Teenager With Exceptional “Mental Time Travel” Abilities Sees Past And Future With Rare Clarity
  • Think Hay Fever Season Is Over? Think Again – Fall Allergies Are On The Way
  • Microscopic Engine Is Hottest In The World – Just Like The Core Of The Sun
  • Gerrymandering Explained: How Math Is Used For Political Gain To Win Elections
  • The Longest Sperm On Earth Is 20 Times The Animals’ Body Size, But Whose Is It?
  • Ancient Bacterial DNA Has Been Recovered From A 1.1-Million-Year-Old Mammoth
  • On Sunday, 7 Billion People Will See The Moon Turn Red. But Who Will See The Blue Band?
  • 670-Year-Old Manuscript On “Unexplained Phenomena” Is Bad News For Believers In The Shroud Of Turin
  • What’s The Largest Egg Of Any Animal? Clue: It Doesn’t Come From An Ostrich
  • Snowy Albatross, The Largest Flying Bird By Wingspan, Is A Master Of Long-Haul Flight
  • Why Have Some Gel Nail Polishes Just Been Banned In Europe?
  • Beyond The Lab: How The World’s Largest Lab Science Conference Is Changing Lives
  • Meet Madame Berthe’s Mouse Lemur, The World’s Smallest Primate
  • 40 Years Since Titanic’s Wreck Was Found, Watch The Rare Footage Of Its Discovery
  • Watch As An Asteroid The Size Of A Brachiosaurus Passes 0.0014599 AU From Earth Tomorrow
  • The Crypt Of Civilization Was Sealed 85 Years Ago. It Won’t Be Opened Again Until The Year 8113 CE
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version