Auto loan and credit card applications hit record highs in the United States



Americans are ready to go into debt again and, in some cases, more than they have in over a decade.

According to Equifax Inc, a credit reporting company, consumer demand for personal loans, general purpose credit cards, auto loans, and leases were up 39% in April compared to the same period last year. The numbers were also up 11% from April 2019. To get these results, Equifax measured how often finance providers check consumers’ credit reports to determine eligibility.

Tom Aliff, senior vice president of analytical consulting at Equifax, said: “There is a significant increase in demand for consumer credit and a growing appetite to use credit for things like this holiday that has been postponed. 18 months.

Based on data provided by Equifax, lenders granted a record number of auto loans and rentals in March, over three million. Financial services companies also increased credit card issuance by 32% from 2020, issuing nearly six million general purpose credit cards in March 2021.

Unlike 2020, when many people avoided all types of debt, including credit cards and personal loans, things have now started to change quickly. At the start of the COVID-19 epidemic, many consumers did not need to borrow as rising unemployment benefits, stimulus checks and a wild stock market were helping to fill their checking accounts. Additionally, while many did not want to spend any money for fear of potentially losing their jobs due to the pandemic, others, stuck at home, had fewer opportunities to shop.

Lately, however, with the spread of vaccines in the United States and the disappearance of the virus, the economy is slowly recovering. As they rebuild their confidence in the economy after last year’s recession, Americans splurge again on fancy cars, vacations and restaurants. Higher prices, especially for cars and trucks, also play an important role in the demand for loans.


Leave A Reply

Your email address will not be published.