Nearly 200 thousand residents use credit cards in Latvia. In 2024, compared to 2023, the level of the average credit limit used has remained constant or even slightly decreased in some groups, according to the information collected by the “Credit Information Bureau”. This means that the population did not borrow more than last year to ensure consumption. On the other hand, a dynamic growth can be seen in the number of newly issued credit cards, and it is approaching pre-pandemic symptoms.
There are currently 220,000 active credit cards, and part of the population has more than one credit card. The total credit limit granted is 384.6 million euros, or an average of 1.75 thousand euros for each credit card. The credit limit of 70% of credit cards is up to 2000 euros, 23% from 2000 to 5000 euros and 7% higher than 5000 euros.
The wealthiest spend less
Data display – the better the credit rating on a person’s credit history, the less he will use the specified credit limit. If residents in the first half of 2023 with a high (A) and good (B) credit rating used an average of 17% and 54% of the specified credit limit, respectively, in the corresponding period of this year, 14% and 46%
“In fact, the need to use a credit card has decreased for this part of society and more savings are being made. On the other hand, the average level of credit card usage for residents with a bad credit rating (E) has remained unchanged – 84 % of the granted credit limit Although economic growth is currently low, in the the last few years there has been a relatively large increase in wages, which has allowed residents who use credit cards to reduce or leave the average credit limit unchanged. ,” explained expert Intars Miķelsons.
Lower limits for youth and seniors
The data shows that the credit limit granted to young people and the elderly is on average 30% lower than that of other age groups. At the same time, young people in the 18 to 25 age group (46%) use the most active credit limit. As the age increases, the consumption of the credit limit falls and after the age of 61 it is only 20%.
On the other hand, looking at the size of the credit limit according to the person’s credit rating, it can be seen that the better the credit rating, the higher the credit rating given to the person. With the highest credit rating (A), the average amount granted is more than 1,800 euros, and with the lowest rating (E) – 1,400 euros.
For many, their only credit is a credit card
Currently, 77 thousand people or 39% of credit card holders have credit cards, which are the only active financial obligations. On the other hand, 55 thousand people or 29% of credit card holders have one active credit agreement.
Additional active lines of credit and consumer loans are more common for people with bad credit, while active mortgage loans and leases are more often granted to people with good credit.
More and more new credit cards
Dynamic growth can be seen in the number of credit cards issued, and the numbers are approaching pre-pandemic indicators, when around 7,000 new credit cards were issued per quarter on average.
“The average level of credit granted has a slight tendency to decrease, but in fact, just as the number of credit cards issued is approaching the pre-pandemic indicators. a credit limit was given,” says I. Miķelsons.
2024-10-03 04:42:00
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