Consumer credit across the board is expected to rise in 2022, in some cases still behind pre-pandemic levels but in others exceeding it, according to projections from TransUnion. Some of the growth will result from credit-hungry lenders offering more credit to nonprime borrowers, notably in auto lending, credit cards and unsecured personal loans.
Massive increases in home prices are driving major growth in home equity that consumers could tap for secured personal borrowing, potentially waking up a credit category that has been very quiet for years.
Overall, TransUnion cites increasing normalization of the economy as a factor in growth anticipated for 2022. A potential influence will be increases in interest rates. The Federal Reserve has indicated there will likely be at least three quarter-point hikes in 2022.
Wild cards include ongoing inflation as well as the impact the Omicron
Article source: https://thefinancialbrand.com/126641/the-future-of-consumer-credit-in-2022-and-beyond/
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