Subprime Credit Population

Description of the Indicator
This indicator identifies the percentage of the population with subprime – or relatively low – credit. Therefore, these individuals would not quality for the best interest rates available for whatever financing they need.

Why is it important?
This is an important measure because it indicates what percentage of the population may have a high debt burden related to mortgages or other types of financing. Relatively large shares of their earned incomes must be applied to debt as opposed to other living expenses. This puts people at risk of falling into default if there is a family emergency or income stability issue.

How is the region performing?
About one in four people in Lackawanna and Luzerne Counties fall into this population. The share is approximately one in five for Wayne County. Based on Experian data (2021), the national number is about 30 percent. Experian also reports that the 24-39 age group and the 18-23 age group are the two largest population segments with subprime credit. While the younger population likely has not had the opportunity to build credit, the Millennials are struggling and not doing as well as their Baby Boomer parents.