TransUnion Research: UK Under-30s Outpace Inflation with Smarter Credit Habits

TransUnion’s latest research reveals that UK consumers under 30 are outperforming inflation, with income growth of 48% since 2019 significantly outpacing price rises. For fintech lenders, this demographic represents a resilient growth segment characterized by lower debt-to-income ratios and a shift toward flexible credit products, despite the mounting pressure of rising housing costs.

What was announced

TransUnion presented its new study, “Lending to Key Growth Segments: The Shifting Credit Preferences and Behaviours of Under 30s,” at its annual 2026 UK Summit. The research compared the financial health and borrowing habits of consumers aged 18–30 from 2019 through to early 2026. The findings indicate that median take-home pay for this demographic rose from £1,759 a month in Q1 2019 to £2,600 in Q1 2026. This 48% increase notably exceeded the 31% rise in the Consumer Prices Index including owner occupiers' housing costs (CPIH) over the same period.

While income has grown, the study highlights significant pressure within the housing sector. For younger consumers paying rent, these costs accounted for 52% of their income in Q1 2026, up from 40% in early 2022. Mortgage holders saw a similar trend, with payments rising from 39% to 49% of income. Despite this, the debt-to-income ratio for under-30s has improved; unsecured debt equalled 1.8 months of take-home pay in Q1 2026, down from 2.7 months in 2019.

The research also identified a shift in product preference. Buy now, pay later (BNPL) usage among under-30s reached 18% in the six months prior to January 2026, a sharp increase from 4% in 2019. Credit card adoption is also on the rise, with 35% of this group now holding a card. In Q1 2026 alone, younger consumers opened 750,000 new credit card accounts, nearly double the 404,000 opened in the first quarter of 2019.

"Much of what we think we know about how younger consumers manage money and use credit was formed years ago, and their behaviour has changed considerably since. Views that held true in years past may no longer reflect today's under-30s, many of whom are in a strong financial position and managing their finances responsibly,"

James O’Donnell at TransUnion

The companies involved

TransUnion (NYSE: TRU) is a global information and insights company and one of the major credit reporting agencies operating in the UK. The firm provides a wide array of data solutions that allow financial institutions to assess risk, manage fraud, and facilitate lending. By utilizing trended data and affordability models, TransUnion enables lenders to look beyond traditional credit scores to gain a more nuanced view of borrower behavior.

The company has a significant presence in the fintech and banking sectors, frequently publishing research that serves as a benchmark for consumer credit health. TransUnion’s research and consulting division, where James O’Donnell serves as director, focuses on identifying emerging trends in the credit market to help lenders refine their underwriting and customer acquisition strategies. The firm’s data is often used to support financial inclusion initiatives, helping to bridge the gap between traditional credit assessments and the evolving financial realities of modern consumers, such as the under-30 demographic highlighted in this latest summit report.

What FF News has reported before

FF News has closely followed TransUnion’s analysis of the UK’s evolving credit landscape. In September 2026, the publication covered a report showing that the UK Debt-to-Income Ratio Hits Record Low Despite Rising Credit Balances: TransUnion Report, a trend that appears to be mirrored in this latest study of younger borrowers. The company’s move toward more personalized financial tools was also highlighted in the launch of TransUnion and Bankrate Launch Hyper-Personalized Credit Matching for Millions of Consumers.

Additionally, FF News has reported on TransUnion’s efforts to combat financial crime, including data showing that TransUnion FOI Reveals 1 in 5 UK Scams Target Previous Victims via Recovery Room Fraud. The broader industry shift toward alternative data for credit scoring was also a key theme when Omnisient Wins Money20/20 Banking Grand Prix for Grocery-Based Credit Scoring, reflecting the same drive for model enhancement mentioned by TransUnion at its 2026 Summit.

What this means

This data challenges the prevailing narrative of a "lost generation" trapped in a cycle of debt. Instead, it suggests a market where younger borrowers are more disciplined than their predecessors, using credit as a tool for cash flow management rather than a survival mechanism. However, the extreme concentration of income toward housing costs creates a precarious ceiling for the sector. If rent and mortgage payments continue to consume more than half of take-home pay, the capacity for these consumers to engage with other financial products—such as personal loans or high-limit cards—will inevitably tighten, regardless of their responsible behavior. This creates a clear challenge for lenders to balance affordability with the growing demand for flexible credit.