Young Banks Frequently Providing Credit Cards to Russian Minors Under the Age of 20, as per Central Bank's Report
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Hey there! Let's talk about credit cards and loans. It's fascinating to see the trends among different age groups, especially the younguns under 20. Apparently, they're the most enthusiastic about credit cards these days, according to the latest reports.
Banks been handin' out credit cards like candy to the under-20 crowd these days. back in Q3 of 2024, they accounted for 11% of all those new pieces of plastic. looks like the Russians aged 20-30 took the lead in Q4 with a whopping 21.6%!
Over in the mortgage market, it's a different story. People aged 20-40 snatched up 68% of the loans issued during October-December 2024. Guess who got left out? That's right, the under-20 gang, who managed to score only 1.6% of those mortgages.
The Central Bank noticed a dip in the overall number of borrowers, from 50.6 million to 50.1 million in the second half of 2024. But, you know what they found interesting? The number of Russians with microloans jumped up to 10 million by the end of the year! Almost half of that debt (49.6%) is owned by folks with three or more loans. And, get this, the approval rate for those with good creditworthiness started to recover in Q4, which is a good sign.
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Speaking of Credit Cards, the surge in usage among the under-20 crowd can be linked to a few factors. They're gaining more financial independence, getting exposed to various credit products earlier, and using credit cards for convenience, rewards, and building credit histories. Inflation and rising costs might also be pushing them towards credit cards to manage expenses.
Now, the older groups, like those in their 30s to 50s, are more likely to be homeowners and possess mortgages. Credit card delinquency rates are higher in the 20-64 age range, but it's hard to find reliable data on the under-20 age group since they rarely have mortgages and established credit. However, the rising trend of credit card usage suggests that younger consumers are gradually stepping into credit risks.
On the flip side, mortgage holdings are concentrated among middle-aged folks who are more likely to qualify and take on mortgage debt compared to younger or much older groups.
In a nutshell, the under-20 crowd is jumping into credit cards while mortgage loans remain popular among the older age groups. The credit card and delinquency patterns reveal economic pressures and income inequalities across all adult age cohorts. Stay tuned for more updates!
- For the under-20 age group, there's a growing trend towards personal-finance products like credit cards, likely due to factors such as financial independence, exposure to various credit products, and managing escalating costs.
- Meanwhile, business loans in the form of mortgages are predominantly held by the older age groups, particularly those in their 30s to 50s, indicating that they are more likely to qualify and take on such financial responsibilities.
