Unexpected Expenses and the Demand for External Financing Solutions

Credit-Marginalized Consumers Turn to High-Interest Credit to Cover Emergency Expenses

Credit-marginalized consumers — those who have been rejected for at least one credit product in the past year — are 47% more likely than average to have faced an unexpected expense, and they were more than twice as likely to turn to high-interest credit products to cover the costs, according to PYMNTS Intelligence’s latest study of 2,521 consumers, “The Credit Accessibility Series: Unexpected Expenses and the Demand for External Financing Solutions,” a collaboration with Sezzle.

Inside the December Report
  • 81%: Portion of credit-marginalized consumers who faced unexpected costs in the past year also experienced further credit issues as a result
  • 7%: Share of consumers who use BNPL to pay for unexpected expenses
  • 30%: Portion of consumers who had their credit scores decline because of facing unexpected expenses

    First Name*

    Last Name*

    Title*

    Company*

    Country*

    Work Email*

    BY COMPLETING THIS FORM, I HAVE READ AND ACKNOWLEDGED THE TERMS AND CONDITIONS.

    Sezzle The Credit Accessibility Series

    Declining Purchasing Power Pushes Consumers to Improve Credit Scores
    Economic Malaise Exacerbating U.S. Consumer Debt Levels
    How Consumers Use Overdrafts
    The Credit Insecure Need More Education
    BNPL's Wide-Ranging Impact on Consumers and Merchants
    How Credit Insecurity is Changing U.S. Consumers’ Borrowing Habits