TransUnion’s quarterly Industry Insights Report and monthly industry snapshot analysis shed light on consumer credit trends during the pandemic
At the end of the last quarter, one key data point from our Q1 2020 Industry Insights Report loomed large: The percentage of accounts entering “financial hardship” status, which includes factors such as deferred payment, frozen accounts or past due payments, had risen for credit products, such as auto loans, credit cards, mortgages and personal loans.
Fortunately, in Q2, more positive numbers emerged. As revealed in the just-released Q2 2020 Industry Insights Report, the number of accounts in financial hardship status — which appear to have peaked in May and June — dropped in July, the first such decrease since the pandemic struck the US. Additionally, credit performance has continued to hold steady and serious delinquencies (60–90 days past due) showed a month-over-month improvement from June 2020 to July 2020 across most credit products.
“Overall, the consumer credit market has been performing quite well despite the obvious challenges brought on by the COVID-19 pandemic,” said Matt Komos, Vice President of Research and Consulting at TransUnion. “It’s a reassuring sign that delinquency levels have remained relatively low, especially as the percentage of consumers in financial hardship status has started to decline.”
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