Study Finds Consumers Opening Fewer Credit Cards
A study published by the Experian credit bureau has found that consumers in the 20 largest metropolitan U.S. areas have sharply curtailed opening new credit card accounts.
The firm reported that it had taken the data from consumer credit reporting data rather than from consumer surveys. According to the numbers, consumers in the surveyed areas opened 26% fewer credit card accounts than they were three years ago.
The company defined credit cards as open ended credit cards as well as card issued by retailers and included cards attached to home equity lines of credit.
The study suggested that consumers in New York City might be more open to pitches for new card accounts since they have an average 3.77 open card accounts per consumer. By contrast, consumers in Phoenix, Arizona, have an average of 2.78 accounts per consumer.
Curiously, while New Yorkers have the most open card accounts, they do not carry the highest balances. While New Yorkers carry an average balance of $5,713 per card account, card-holders in Atlanta, Georgia have the highest average card balance at $6,753.