Young Borrowers: Riskier Than Ever...and the Future of Credit Cards

The future of credit cards rests with younger consumers, in the 18-to-29 age range, and not with their parents and grandparents. Here’s the rub, though: These consumers are a much higher-risk bet for card issuers, more prone to serious delinquency and charge-off. This puts lenders in a position of having to carefully consider their loan book and identify ways to nurture these consumers into midlife (and, presumably, wealth). 

This Javelin Strategy & Research report looks at the risk characteristics of consumers by age groups, details how their performance with cards shifts as they age, and considers how issuers can respond in their offers and positioning.

Key questions discussed in this report: 

• How do risk characteristics change among age groups?
• What is significant about risk among younger age groups?
• How should credit card lenders approach younger borrowers?
• What makes younger borrowers different from their parents and grandparents?
• How should issuers react from the perspectives of lending and collection? 

Companies Mentioned: 

American Express, Bank of America, Capital One, Chase, Citi, Discover, Mastercard, TD Bank, TransUnion, USAA, U.S. Bank, Visa, Wells Fargo