30% of adults who took out loans in the last six months used them for emergencies or to pay bills, ScoreSense survey finds

One in four adults surveyed have used loans to pay off credit card debt

DALLAS , November 4, 2022 /PRNewswire/ — According to a survey conducted by ScoreSense®, a credit score monitoring product. The results of the investigation, revealed in the “Survey of consumers with recent loans and analysis of credit prospects“, focused on credit and consumer finance activity for the third quarter of 2022.

(PRNewsfoto/ScoreSense)

The ScoreSense survey reveals that one in four people have used recent loans to pay off credit card debt.

ScoreSense analysis of consumer credit activity shows budgets are getting tighter for consumers of all ages: Fewer people are interested in getting new loans due to higher interest rates, and those taking loans use them more frequently simply to stay on top of bills. The survey showed continued credit spending, overspending and late payments. Seniors are also experiencing the same increase in delinquencies and Card Over Limit spending, showing the stress this economy can put on a fixed income. The ScoreSense Loans survey found that adults aged 65 or older were more likely to take out an emergency loan than young adults surveyed.

The consumer spending and credit analysis, which compared the third quarter of 2022 to the same period last year, found:

  • Arrears increased by 21% between Q3 2021 and Q3 2022. Over the year, it increased by 14% from Q2 to Q3.

  • Card Over Limit increased by 11% in Q3 compared to Q2 of 2022.
    New Trade, when a consumer opens a new line of credit, is down 18% in Q3 compared to Q2. This figure is consistent with what we see in reduced website traffic for credit and financial services. Consumers are less interested in obtaining new loans due to rising interest rates.

ScoreSense’s consumer survey, focusing on adults with loans (personal, home equity, home equity line of credit, debt consolidation and others), found:

  • One in four adults have used loans to pay off credit card debt.

  • Adults 65 or older were more likely to take out an emergency loan than younger adults surveyed.

  • Nearly a quarter (23%) of survey respondents said they had taken out a loan for personal projects.

  • One in five respondents (19%) used the loan to renovate their home, and 18% of the loans were needed to purchase a vehicle.

  • Adults aged 25 to 34 (23%) were more likely to use loans for new home purchases and related expenses.

“Despite the Federal Reserve’s efforts to rein in inflation, prices remain high or continue to climb, and many Americans continue to struggle,” he said. Carlos Medinasenior vice president at One Technologies, LLC., which offers ScoreSense. “Many adults are using credit to pay for everyday expenses, and rising interest rates are making it harder to pay off their debts. Based on our survey and credit analysis, these issues affect all age groups, including seniors on fixed incomes.

ScoreSense serves as a single digital resource where consumers can access credit scores and reports from the three major credit bureaus—TransUnion®Equifax®and Experian®— and understand what affects their credit the most.

About One Technologies

One Technologies, LLC harnesses the power of technology, analytics and its people to create solutions that empower consumers to make more informed decisions about their financial lives. The Company’s consumer credit products include ScoreSense®, which allows members to seamlessly access, interact and understand their credit profiles from all three major bureaus using a single application. The ScoreSense platform is continually updated to give members deeper insights, personalized tools, and personalized customer service that can help them get the most out of their credit. One Technologies is headquartered in Dallas and was established in October 2000. For more information, please visit onetechnologies.net.

Contact: Scott Tims[email protected]

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