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Analysis

Credit Cards Rise in Payment Pecking Order Under Stress

TransUnion study finds borrowers are more likely to pay their sole credit card than personal loans during the pandemic.

Chart showing single credit card holders are more likely to pay down the balance

Borrowers with both a personal loan and a single credit card became more likely during the pandemic to keep up payments on their card than their loan, according to a TransUnion survey released Wednesday.

The Chicago credit reporting and analytics company studied trends in the United States, Canada, Colombia, India and South Africa and found that before 2020 borrowers in every region prioritized their personal loans over their credit card.

“This trend was largely driven by the presence of multiple cards in wallets, which allows consumers to go delinquent on one or more of their credit cards, while paying their primary card and preserving its use,” the report said.

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Jim DuPlessis

Jim DuPlessis

A journalist for decades.

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