Thursday, July 30, 2020

Most credit is issued to super-prime borrowers

Here are the facts about credit card issuance.  All of this data is before the current pandemic recession, so you know it has changed, probably drastically.

There are approximately 6 million credit cards issued each month, and the amount of new credit issued is approximately $35 billion per month.  The average credit limit for all cards issued is about $5,900.

This is the breakdown per category of credit.  I don't know the average credit limit per category or the average number of cards per category so this is an educated guess.  I assume that this includes secured cards.

Deep Subprime (below 580): 900,000 credit cards issued each month with an average credit limit of $300.  Total credit issued about $270 million.
Subprime (580 to 619): 900,000 credit cards issued each month with an average credit limit of $600.  Total credit issued is about $540 million.
Near-Prime (620 to 659): 1 million credit cards issued each month with an average credit limit of $1500 for a total of $1.5 billion
Prime (660 to 719): 1.3 million credit cards issued each month with an average credit limit of $4500 for a total of $5.8 billion in credit.
Super-Prime (720 plus): 1.7 million credit cards issued each month with an average credit limit of $15,000 for a total of $25.5 billion in credit.

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