Stable credit use seen in youth, but education gaps remain: survey

TransUnion warns that continued financial education is essential to maintain and improve these positive trends.

Young adults in Hong Kong are largely managing their credit responsibly, with delinquency rates amongst 21-year-olds at just 1.5% after 12 months of opening a credit card, falling to 1% by ages 25 and 26, in line with industry norms.

However, a new study by TransUnion warns that continued financial education is essential to maintain and improve these positive trends.

Presented at the 2025 Hong Kong Financial Services Summit, the report “Empowering Young Consumers’ Credit Lifecycle,” explored the credit behaviours of consumers aged 21 to 30. It reveals that whilst younger borrowers are relatively new to credit, they are far from reckless.

Despite lingering stereotypes about Gen Z and young millennials being financially irresponsible, the data paints a different picture. Credit utilisation rates remain stable as access and balances grow, suggesting a maturing approach to borrowing.

TransUnion also found that 70% of 21–25-year-olds already own a credit card, whilst those aged 26–30 are also showing greater wallet diversity, with 11% holding personal loans, nearly double the industry average.

Still, the study noted only 3% of young adults return to their first lender for additional products—an area where banks and financial institutions could improve with better loyalty-building and education strategies.