Do young people easily obtain consumer loans and if so why do they use them? This is the question that Good Bank asked itself by studying the 82,000 requests for financing deposited on its site in 2015.
Here is the portrait of those under 30 who are using credit to carry out their project:
Few, single and mainly men
First thing to note: their number. Those under 30 are in fact a minority among consumer borrowers (just over 1 in 10). Regarding their family situation, 64% are single and 36% in a couple.
The former receive an average income of $ 2,057 and the latter $ 3,603. In terms of housing, 53% are tenants, 26% are housed by their families and 18% are owners. Finally 69% are men.
Consumer credit: what for?
For a very large majority ( 83% ) it is the first consumer credit when the others are in their second. Regarding the objectives, 1 in 2 young borrowers uses the credit for a personal project with an average amount of $ 6,616.
38% use it to finance the purchase of their vehicle with an average loan amount of $ 11,788. At the vehicle type level, more than 70% buy a used vehicle, compared to 59% for all generations.
Finally, the third reason to use a consumer loan is the work loan for 8% of young people against 17% for the rest of consumer borrowers. Their average loan amount is then $ 16,494.
Are you young and would you like to obtain consumer credit? Here are a few tips :
1. Use the online consumer credit simulation tools: by playing monthly payments, rates and terms, you will have an overview of the loan you can obtain.
2. Do not approach a single actor but compare the establishments to obtain the best price.
3. Look at the APR rather than the interest rate. The APRC indicates the overall cost of a loan: fees and interest included.
4. Avoid multiplying the loans: prefer a personal loan to cover your different needs rather than several small specific loans. The larger the amount, the lower the rate.