ComScore Inc. reported a 30% rise in online credit card applications from consumers with subprime (660 or lower) credit scores in the first quarter, compared to the same period last year. The market research firm also uncovered other signs of economic distress.
The volume on credit card applications coming from consumers with prime (greater than 660) credit scores declined by 16% during the first quarter, compared to same quarter in 2007.
“During challenging economic times it’s not surprising to see dramatic shifts in consumer behavior in the online banking and credit card industries,” said in a statement Kevin Levitt, vice president at ComScore.
It reported 10.6 million applications for credit cards were submitted online during the first quarter, compared to 9.8 million during the first quarter of 2007. More than 6.7 million applicants in first quarter had subprime credit scores, compared to 5.1 million in the same quarter the previous year.
More than 3.9 million applicants had prime credit scores during the first quarter, down from more than 4.7 million in the first quarter of 2007.
Other research related to online behavior showed an uptick in searches for such terms as “cash advance,” “foreclosure,” and “credit card.” These search terms offer insight into consumers’ minds and how they’re affected by economic conditions, according to Levitt.
The volume of online searches for “cash advance” more than doubled in the first quarter, compared to the same quarter in 2007. Similarly, the number of searches for “foreclosure” increased by 68%, according to ComScore.
ComScore Inc. reported a 30% rise in online credit card applications from consumers with subprime (660 or lower) credit scores in the first quarter, compared to the same period last year. The market research firm also uncovered other signs of economic distress.
Advertisement
