Youngsters under the age of 20 in Russia are being given greater access to credit cards by banks, according to the Central Bank.
The Youngest Borrowers Favor Credit Cards, Says Report
The preference among the youngest Age Group, below 20, for credit cards remains undisputed, as per the recent data. Banks have increased credit card issuance to this demographic, accounting for a remarkable 11% of all cards issued in Q3 of 2024.
Russians aged 20 to 30 took the lead in the fourth quarter, with 21.6% of all credit cards issued. The mortgage sector, however, witnesses a different trend. From October to December 2024, 68% of all mortgage loans approved were for borrowers between 20 and 40. Only 1.6% were for those under 20.
The Central Bank reported a drop in borrowers, from 50.6 million to 50.1 million, in the second half of 2024. Meanwhile, the number of Russians with microloans increased to 10 million by year-end, with nearly half (49.6%) of the total bank debt belonging to borrowers holding three or more loans. The recovery of approval rates for borrowers with good creditworthiness began to edge up in the fourth quarter of 2024.
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Keywords: Central Bank, Lending, Loans
In the global scenario, there's a dearth of specific data on the frequency and percentage of credit card issuance to youth under 20. However, it's worth noting:
- Youth-focused Credit Cards:
- credit cards tailored for teens, like the Step Visa and Capital One Quicksilver, are gaining popularity for educational purposes with parental involvement [2].
- Debit cards, such as the BusyKid Visa Prepaid Debit Card, are widely used for financial literacy and management among young people [3].
- Worldwide Trends:
- Credit cards issued to youth are often accompanied by financial literacy programs and parental guidance.
- Credit companies might refrain from disclosing detailed statistics on client age due to privacy and regulatory concerns.
- Comparative Figures:
- Younger age groups are less likely to use credit cards compared to older adults with established credit histories and income levels.
- Despite young adults (20-30) being the most likely credit card users, specific statistics for those below 20 are hard to come by.
- Youth in Financial Markets:
- Youth employment challenges, such as in Canada and the U.S., affect the issuance and usage of credit products [1][5].
Overall, while financial tools for youth are on the rise, comprehensive statistics on credit card issuance for those under 20 prove elusive. Financial education and literacy are paramount in fostering financially responsible behavior among this demographic.
- Though data on the frequency of credit card issuance to those under 20 globally is hard to find, there are credit cards designed for young people, such as the Step Visa and Capital One Quicksilver, which focus on education with parental involvement.
- Debit cards, like the BusyKid Visa Prepaid Debit Card, are also popular for financial literacy and management among younger generations.
- As privacy and regulatory concerns may prevent credit companies from disclosing detailed statistics on client age, it's worth noting that younger age groups use credit cards less frequently compared to older adults with established credit histories and income levels.
- Despite young adults (20-30) being the most likely age group to use credit cards, specific statistics on credit card issuance for those below 20 remain elusive.
