Banking / Finance

Eight million credit card users are “inactive”, says TransUnion

A new study from TransUnion claims that there are eight million inactive credit card accounts in the U.S. today. The whopping number of inactive accounts likely triggered a 24.6% slide in U.S. credit card delinquency rates, according to the TransUnion study.
Financial demographics play a big role, too. Most of those eight million inactive card users are in the “high risk” category, TransUnion says. But consumers are tightening their belts across all card categories.
“This deleveraging is believed to be due in part to charge-offs in the higher risk segments of the population, more conservative spending in the low-risk segments, and significant efforts by consumers across the board to maintain the health of their credit card relationships as a financial cushion,” the report states. “Based upon income levels estimated by TransUnion’s income estimation model, consumers with higher incomes were just as likely as consumers with lower incomes to suspend their use of this payment option.”

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