TransUnion Says Credit Lines Shrinking 2022

 

TransUnion Says Credit Lines Shrinking 2022

TransUnion Says Credit Lines Shrinking are giving lower credit limits than they have in the past we are going to look at the exact numbers but before we do i'm going to ask you to please subscribe to this youtube channel right here if you have not already and if you have already 

i thank you for doing so so credit bureau transunion puts out a regular quarterly report uh talking about the state of the consumer credit market and i'm going to zero in on the credit card numbers for quarter two of 2022 some interesting stuff in here 

now here is a chart that might be a little bit difficult for you to read so i'm going to go over some of the highlights in the second quarter 15.5 million new credit cards issued that compares pretty much favorably or the same as last year at this time so the second quarter of 2020 15.3 million 

so still a ton of credit cards being issued overall the number of credit cards out there on the market according to transunion 451 million that is obviously a huge number i just looked earlier the population 18 and over in the us 

somewhere around 260 million so you figure some of those people don't have a credit card at all so that's probably at least about a two to three card average for the people actually carry a credit card however the average credit line on those cards being issued in the second quarter five thousand 

two hundred and fifty seven dollars which may sound somewhat sizeable but that is actually almost ten percent down from the same quarter in 2019 and actually they went back to 2017 in terms of what they're showing on the chart and that is the lowest it has been so that is the lowest

it's been for quarter two at least since 2016 maybe even longer than that so plenty of cards still being issued but less going to every single person and transunion says 

this is true across credit tiers so whether you have excellent credit bad credit or somewhere in between the chances of you getting a smaller credit line than you might have in the past pretty much the same 

now while the covet 19 crisis would lead you to believe that people are more likely to have put money onto their credit cards and have bigger balances trans unions numbers from the second quarter say that that's not true the average balance on a credit card actually went down to around 5 200 

now that might seem like a big amount to you but you should know that 50 200 does not necessarily mean revolving credit a good portion of that is probably getting paid off every month but anyway that is getting lower instead of getting higher we've got stimulus money probably to thank there 

we probably also have the fact that people just aren't spending as much in general because for a large part of the past six months we have been expected to be indoors or we have wanted to be indoors and away from other people so we're not going on vacations or amusement parks 

you know a million other places as well so some of that money that people have in their pockets actually going to pay off their credit cards delinquency rates on credit cards also down to the lowest they have been since 2017 so people are managing to keep their credit cards going and not paying 

so late that they are showing up in those delinquency numbers now on this chart you might have noted that there is an asterisk next to the two most important numbers that i talked about the number of new cards originated and the average credit line on those cards 

if we look at the bottom of the chart there's actually a note that says originations are viewed one quarter in arrears to account for reporting lags and my understanding of that is that for those particular numbers those are actually the numbers from quarter one being reported on the quarter to report 

so those new card originations and the average credit line actually from january february march january february february march not as bad probably as april may june i would guess we started off the year in pretty good financial shape as a country it was late february before 

we kind of got into the covid crisis but april may june you would have to say sort of the heart of the covid crisis so it will be interesting to see actually the third quarter report that shows the second quarter numbers on new card originations and the average credit line 

as to whether that continued to go down now one thing we're not getting from this report is any numbers on whether credit lines are being cut on cards that already exist cards that are already in people's hands now there definitely have been enough stories and it makes sense that 

they would be getting cut even some of the credit card companies have admitted that they have been cutting down credit lines however we don't have any hard numbers for that to say whether that is completely across the board or whether that is certain credit tiers like maybe people with bad credit are being cut more than people with better credit scores 

so we just don't know we know that it probably is true but we don't have any actual numbers on it i said in another video recently that it is interesting right now to see that there are some really nice bonuses for new card holders from some of the major issuers because while 

we would have to imagine that a lot of these card companies are pulling back it seems that they are giving bonuses at least some of them better than we've ever seen before so does that mean what they really are doing is not so much cutting back across the board 

as they are working harder and harder to get the people with the highest credit scores putting bonuses out there that are better than they've ever seen to try and get those people in and probably keeping people with lower credit scores out because it seems pretty clear that 

these standards have changed in terms of to qualify for some of these cards you're going to need a higher credit score than you did in the past but to see these big bonuses at a time when the economy is supposed to be struggling you know worse than it has in a 

very long time is a little confusing and that's my hunch as to what's going on they're going after those better credit customers and doing whatever they can to entice them in so for me in the last six months i've had one card closed due to inactivity 

i think that is a result of the coronavirus and the card companies trying to close some of those lines that aren't getting used but otherwise i haven't had any credit lines cut the only new credit card 

i think i've gotten is the verizon visa and i got a credit line that seemed like it made sense compared to you know my overall credit profile i would love to hear your experiences 

If you've gotten new credit cards are you getting smaller credit lines than you would have expected are you seeing the credit lines that you have already getting cut 

I would love to hear your experiences and i'm sure many other people would too put them in the comments section below otherwise i thank you for watching and as always please go to proudmoney.com where we do credit card reviews we talk personal finance we talk deals and all sorts of other fun stuff too thank you for watching bye.

 
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