DallasAnd November 3, 2021 /PRNewswire/ — Consumers are increasingly opening lines of credit, financing purchases and making late payments, according to a recent analysis of customer credit activity from ScoreSense, a credit score-monitoring product. analysis, from January 2021 At present, he reveals the direction of the “stepping stone”:
The number of customers opening new credit accounts, which has been up nearly 5 percent since January, has increased steadily over the year as people have returned to a more normal lifestyle.
Credit card use surged in the summer months as people began to increase discretionary spending on travel, dining, and other activities.
In the wake of the increase in credit card spending, which started to the upside in March, delinquent account activity trended upward from June to the present.
New accounts, spending, and delinquency in payments continue to trend upwards as the holiday shopping season approaches.
Credit spending trends in ScoreSense coincide with the quarterly report on debt and household credit by the Federal Reserve in New York, which found that credit card bills rose by 17 billion dollars In the second quarter of 2021, to 790 billion dollars nationally. This was the first rally after four consecutive quarters of declines.
“We are starting to see an increase in delinquent accounts, which appears to have lagged behind the increase in credit card spending. This will be a trend to watch over the next 2-3 months to see if some consumers have relapsed into bad credit habits and returned to pre-pandemic levels for credit problems ” Carlos Medina, Senior Vice President of One Technologies, LLC. , which offers ScoreSense. “While average credit scores have increased during the pandemic in 2020 and into this year, it remains to be seen when these improved rates begin to decline to pre-pandemic levels.”
As the fourth quarter approaches, ScoreSense is looking at several economic factors, including the holiday shopping season when many consumers overspend. In addition, ending federal assistance programs such as extended unemployment benefits and bans on evictions could have a negative impact on consumer buying behavior and credit activity if affected consumers rely on credit to pay basic expenses.
ScoreSense acts as a comprehensive digital resource where consumers can access credit scores and reports from all three major credit bureaus – TransUnion®, Equifax®and Experian®They understand what affects their credit the most.
About One Technologies
One Technologies, LLC, harnesses the power of technology, analytics, and its people to create solutions that empower consumers to make informed decisions about their financial lives. The company’s consumer credit products include ScoreSense®, which enables members to easily access, interact with and understand their credit profiles from all three major offices using a single application. The ScoreSense platform is constantly updated to give members deeper insights, customized tools and individual customer care support that can help them get the most out of their credit. One Technologies is headquartered in Dallas and was established in October 2000. For more information, please visit onetechnologies.net.
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