Forecasting 2021: What’s in store for US consumer credit markets in the coming year

For the consumer credit market, 2020 has proven quite tumultuous. The year started off normal enough, but the COVID-19 pandemic quickly threw things off kilter. The exception was the mortgage industry, which benefited from all-time low interest rates, but otherwise, we saw fewer originations across all sectors. Now, it’s time to look ahead — and we think the market is poised to bounce back in 2021.

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Here are just a few highlights from our 2021 forecast.

Q2 will be a barometer of how well things are going

In the second quarter of 2020, lending slowed dramatically for unsecured credit products, such as personal loans and credit cards, but we anticipate the opposite in Q2 of 2021. Barring any unforeseen shocks to the economy, we foresee robust growth at the beginning of Q2. In fact, we predict new originations will return to pre-COVID levels, with credit card and personal loan volumes expected to rise at the greatest rate.


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