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US: Who Fell Behind on their Credit Cards: Delinquencies, Balances, Burden, Available Credit, and the “Maxed Out”
Who are the cardholders that became newly delinquent in Q1? They’re cardholders who’d maxed out their credit cards in the prior quarter, having used up 90% to 100% of their available credit, with all their credit cards at or near the credit limit, according to an analysis by the New York Fed of Equifax data. But only 18% of credit cardholders are “maxed out.” Not 18% of consumers, but 18% of credit-card users – big difference because many consumers don’t have credit cards at all, but use debit cards. Credit card utilization is a function of both the amount charged to the card and the card’s credit ... (full story)