Applying for new credit: what you need to know

A young woman holding a credit card and cell phone (Credit: Getty Images)

Many US consumers are just getting started on their credit journey, according to a new study by TransUnion. The credit bureau’s recent survey “Empowering Credit Inclusion: A Deeper Perspective on New-to-Credit Consumers” shows that in the United States, 5.8 million consumers opened their first credit product and became new-to-credit (NTC) during 2021. And another 3 million became NTC through the first half of 2022.

While 46% of US consumers cited having a convenient means of spending as a top reason for opening their first traditional credit product, access to credit products goes beyond covering the occasional expense.