The Early Effects of the COVID-19 Pandemic on Consumer Credit

This report analyzes the impact of the COVID-19 pandemic on consumer credit outcomes, highlighting trends in delinquencies, payment assistance, credit limits, and balances. Despite challenges, certain support measures have helped mitigate negative effects on credit profiles up to June 2020.

• COVID-19
• Consumer Credit
• Pandemic Impact
• Credit Profiles

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Uploaded on Feb 18, 2025 | 0 Views

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1. The Early Effects of the COVID-19 Pandemic on Consumer Credit Office of Research Special Issue Brief, Released August 31, 2020 Presentation for the CFPB Academic Research Council Ryan Sandler and Judith Ricks

2. How Has the Pandemic Affected Consumers (Reported) Credit Profiles? Motivation The Great Recession had huge impacts on both credit and employment Pandemic has had well documented negative effects on employment and spending even larger than Great Recession Substantial support from government (stimulus, forbearance programs, regulatory flexibility etc.) may counteract effects on credit, at least temporarily. Important to understand how consumers credit lives are faring This report Examines trends in consumer credit outcomes from pre-Pandemic through end of June 2020 Finds limited negative outcomes reflected on consumers credit reports: Delinquencies down, High rates of payment assistance, Little change in credit limits, Balances down. Key Issue: Credit Reporting data is only as good as furnishing 2

3. New delinquencies and increases in delinquency severity 3

4. Share of Open Accounts Reporting Assistance, and Share with Assistance Added or Removed 4

5. Cumulative Change from January 2019 in Total Credit Limits Across All Existing Credit Card Accounts, by Credit Score Group 5

6. Year-Over-Year Changes in Monthly Credit Card Balances 6

7. 7