Meet the new borrowers

Black, Sandra E.; Morgan, Donald P.

Journal Article

Meet the new borrowers

Abstract: Credit card lenders have been writing off loans at sharply higher rates since 1995, suggesting that riskier borrowers are acquiring credit cards. What makes the new borrowers riskier--even more than their personal characteristics and attitudes toward debt--is the fact that they carry higher debt burdens and work in occupations where income may be more cyclical.

Keywords: Bank loans; Credit cards; Risk;