35% of Subprime Consumers Remain Outside US Card Market

Subprime consumers, typically borrowers with weaker credit scores or thin credit files, often face tighter approval standards and less favorable terms than prime customers. Many consequently rely on cash, debit cards or costlier short-term financing. The gap matters both as a financial-inclusion challenge and a commercial opportunity: banks, fintech firms and retailers can reach an underserved segment with more accessible underwriting, appropriately sized credit limits and repayment structures that account for irregular cash flow without masking the higher risk of default.

A recent PYMNTS Intelligence report found that 35% of subprime consumers in the United States hold neither a general-purpose credit card nor a store card, leaving more than one in three outside the card market. The cardless rate is substantially higher than among prime-credit consumers, underscoring the scale of the opening for lenders and merchants. The findings point to demand for credit and payment products that are easier to obtain, though providers will still need to balance access with affordability, transparent pricing and disciplined risk controls.