Majority of Gen Z use credit cards: survey

They have a median balance per consumer of $555 (HKD4,316).

An overwhelming 91% of Hong Kong’s Generation Z - those born in or after 1995 - have a credit card, according to a study by consumer credit report agency TransUnion.

The city came second to Canada (99.8%) and ahead of the United States (50%). Hong Kong’s Gen Z have a median balance per consumer of $555 (HKD4,316), compared to the US’ $606 (HKD4,730).

Consistent GDP growth rate, accompanied by a relatively low interest rate and technological advancements allowed Gen Z to seek credit.

However, balance utilisation rates came in at 19%, compared to US’ and Canada’s 31%. And although credit card usage is high, the percentage of the next most popular products amongst Hong Kong’s Gen Z falls dramatically, with revolving loans at 5% and personal loans at 5%.

Compared to the city’s overall credit active population, the Gen Z are more likely to be prime plus (BB, 33%) or prime (CC, 28%). AA or super prime accounted for 24%, whilst 12% are near prime (DD-HH), and 4% are subprime (II-JJ).

As of Q2 2019, Gen Z comprised more than 1.6 million (22%) of Hong Kong, with those who are over 18 and eligible for credit comprising 6%. Almost half (49%) of this eligible group were credit active during the same period.