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U.S. consumer credit demand back to pre-pandemic levels

by Mike Robinson

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© Reuters. FILEPHOTO: FILEPHOTO: A collection of merchandise bags was carried by shoppers at King of Prussia Mall in King of Prussia (PA), USA, on December 8, 2018. REUTERS/Mark Makela

By Jonnelle Marte

(Reuters) – U.S. customers showed stronger credit demand this year. Credit applications overall have rebounded to the 2019 level after dropping significantly during the pandemic. According to a New York Federal Reserve survey, Monday’s release.

According to the most recent Survey of Consumer Expectations Credit Access Survey, although demand rose across all credit scores and age groups it was strongest among consumers with lower credit scores.

In 2021, credit applications were at 45.6%, which was comparable to the 2019. The rate was at 45.8% in 2019, the report showed. Also, 29.5% of those surveyed said that they would apply for credit in the following year. This is a slight increase from 26.3% in 2020.

Customers also expressed concern about handling unexpected expenses. In 2021, 33.2% of consumers expected to have $2,000 as a surprise cost in their next month, compared with 31.8% for 2020. However, the odds that you will be able to afford $2,000 have declined to 68.2% by 2021 from 69% in 2020.

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