55% of subprime consumers struggle to pay bills, yet most cardholders report paying at least the minimum.

Banks are extending cards to lower-score borrowers, whose median new credit line is $600.

Subprime consumers continue paying their credit cards even as many struggle to cover everyday bills.

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PYMNTS Intelligence’s May report, “Who Is the Subprime Consumer? A Behavioral Profile,” found that 55% of subprime consumers lived paycheck to paycheck with difficulty paying bills in January. The comparable share across all consumers was 24%.

The report’s February findings on card balance management show how borrowers and how subprime cardholders managed their monthly balances. Among subprime respondents reporting their card payment behavior, 45% paid more than the minimum but less than the full monthly balance. Another 31% paid only the minimum, 15% paid in full and 9% paid less than the minimum.

Most reported paying at least the required amount, although relatively few cleared their monthly balances.

Recent earnings commentary describes continued repayment among borrowers with less-than-prime credit profiles (generally below the FICO score of 660).

Consumer financing company Synchrony, whose third-quarter results PYMNTS covered, reported that its nonprime payment rate rose 40 basis points from the previous quarter. CFO Brian Wenzel said the increase matched that of customers with credit scores of 780 or higher, while acknowledging affordability concerns for some consumers.

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