Young credit users less likely to default

Young credit card users, aged 18-25, are less likely to default on their cards than middle aged borrowers, and are likely to be good credit risks in the future.

Research from Arizona State University and the Federal Reserve Bank of Richmond found that while young people often experience minor 30-60 day delinquencies in payment, 40-44 year olds are 12% more likely to experience a serious delinquency of 90 days delayed payment.

Researchers suggest this demonstrates parts of the Credit Card Act of 2009 may be unnecessary. The Act made it illegal to issue credit cards to people under 21 without a cosigner or evidence of independent means of paying back debt.