Report: Gen Z contributing to growth in consumer credit market

GENERATION Z, classified as those born since 1995, is beginning to make its presence felt in the nation’s credit market. Pictured, with teacher Marcy Reyes, standing, are Gen Z students at Central High School in Providence, from left: Osury Aponte, Sita Traore, Daniel Gonzalez, and Ashley Ortiz. / PBN FILE PHOTO/MICHAEL SALERNO

PROVIDENCE – Gen Z, the generation born since 1995, increasingly took part in the consumer credit market in the first half of this year, according to a new market report.

The “Q2 2019 Industry Insights Report” from Chicago-based consumer research firm TransUnion found that growth in the nation’s credit market is coming from the entire Gen Z demographic – currently those age 24 and younger.

About 14 million Gen Z consumers were carrying a credit balance as of the second quarter of this year, an increase from 11 million a year earlier, according to the report.

Moreover, the number of Gen Z consumers who were credit eligible (18 years old or older) increased by 4.5 million over the last year, rising to 31.5 million in the second quarter.

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Over the next three years, the report states, it is anticipated that another 13 million Gen Z consumers will become credit eligible.

Credit cards are the most popular product among Gen Z, with 55% of those eligible for credit already carrying a balance – though they still only constitute 5% of the nation’s population carrying credit card debt, the report found.

“Both the newest and oldest members of the credit-eligible Gen Z generation are beginning to enter the credit market for the very first time,” Matt Komos, TransUnion’s vice president of research and consulting, said in a statement.

“The rapid growth in Gen Z activity is occurring despite many of these individuals having grown up during the Great Recession. Though the recession itself lasted less than two years, its impact was felt for several years afterward,” Komos said.

“As we see more members of this group come of age, we naturally expect continuing growth in credit activity by Gen Z, which we will monitor closely to compare to the behaviors of previous generations,” he added.

Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.

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