Credit-Marginalized Consumers Turn to High-Interest Credit to Cover Emergency Expenses
The Credit Accessibility Series: Unexpected Expenses and the Demand for External Financing Solutions
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
The Credit Accessibility Report
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The Credit Accessibility Series: Declining Purchasing Power Pushes Consumers to Improve Credit Scores
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The Credit Accessibility Series: Economic Malaise Exacerbating U.S. Consumer Debt Levels
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How Consumers Use Overdrafts
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The Credit Insecure Need More Education
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BNPL’s Wide-Ranging Impact on Consumers and Merchants
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How Credit Insecurity is Changing U.S. Consumers’ Borrowing Habits