E Transcon

Main Menu

  • Unsecured Personal Loans
  • Fixed Rate Loans
  • Variable Rate Loans
  • Debt Consolidation Loans
  • Capital

E Transcon

Header Banner

E Transcon

  • Unsecured Personal Loans
  • Fixed Rate Loans
  • Variable Rate Loans
  • Debt Consolidation Loans
  • Capital
Debt Consolidation Loans
Home›Debt Consolidation Loans›Lending to low credit borrowers could increase in 2022, TransUnion predicts

Lending to low credit borrowers could increase in 2022, TransUnion predicts

By Mary M. Cox
December 20, 2021
0
0


Lending to low credit borrowers could increase in 2022, according to a new forecast from TransUnion. (iStock)

Lower credit borrowers are increasingly being approved for cross-credit loans, a trend that is expected to continue in 2022 The latest forecast from TransUnion.

Higher risk consumers – due to poor creditworthiness or other factors – make up a growing proportion of auto and personal loan borrowers. TransUnion said this non-prime lending will benefit the entire consumer credit market.

“During the height of the [COVID-19] Pandemic, at a time of great uncertainty, many lenders have pulled back and tightened their underwriting to hedge against risk, “said Charlie Wise, director of global research and advisory at TransUnion.” However, consumer performance has remained strong, which has restored lender confidence . The economy is normalizing and expanding, and these signs of renewed strength are encouraging lenders to focus not only on the least risky consumers but also to provide better access to those who might be perceived as higher credit risks. “

If you have bad credit, you can still qualify for a loan as lenders increase their offers. If you need a debt consolidation personal loan to lower your monthly payments or for a home improvement project, Visit Credible to find your personalized rate and get prequalified in minutes without affecting your credit report.

INFLATION STAYS HIGH FOR 39 YEARS – THAT MEANS THAT FOR INTEREST RATES

Auto, credit card, and personal loans to add to the low credit offering

The number of personal lending is expected to increase in 2022, TransUnion predicts, leading to seven consecutive quarterly increases even over the year higher interest rates. This increase will benefit prime and sub-prime borrowers, as well as borrowers with cheap and also those with lower credit ratings.

The agency also predicts the number of auto loans will rise as well – to 28.9 million from 28.3 million forecast for this year. Non-prime auto loan issuance is expected to increase from 9.4 million in 2021 to 10 million in 2022 and gain market share.

Lending to borrowers is projected to slow slightly from 2021 to 2022 for borrowers with poor credit ratings. However, the TransUnion study shows that they will remain well above the level of credit card calls for 2019 and 2020.

If you are looking for credit card or credit options but have a low FICO score, Visit Credible to compare multiple credit cards at the same time and choose the one with the benefits and loan terms that best suit you.

JD POWER SURVEY SAYS THIS IS THE UNEXPECTED CONSEQUENCE OF RISING VEHICLE PRICES

Americans seek credit as stimulus money dries up

As the federal pandemic-induced stimulus programs wind down, borrowers may soon be looking for additional credit options.

“The consumer landscape is increasingly resembling the pre-pandemic era,” said Wise. “As deferral programs expire and economic funds dry up, demand for credit rises and consumers rethink their credit needs – which is a sign of a booming and functioning economy. 2022 will mark another return to lending in the credit market. which will help fuel the continued resurgence of consumer spending. “

If you need a personal loan to pay off other high yield debt or are curious about your loan options, Contact Credible to speak to a credit professional and get all your questions answered.

Do you have a question about finance but don’t know who to contact? Send an email to the credible money expert at [email protected] and your question could be answered by Credible in our Money Expert section.


Related posts:

  1. What are FFELP student loans?
  2. TransUnion predicts a ‘return to credit’
  3. Is Obama’s Student Loan Forgiveness Real?
  4. 5 smart ways to consolidate credit card debt – and 5 you should never do

Recent Posts

  • “The key is not to let fear paralyze you.” Now is the time to get proactive before higher rates show up on your credit card statements.
  • Professional Loan for CAs, Physicians: Here’s Everything You Need to Know
  • Australia’s largest bank surprises the credit market with massive fixed rate hikes
  • Why taking out a HELOC could be dangerous this year
  • Do I have enough equity to pay for a new roof?

Archives

  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • October 2020

Categories

  • Capital
  • Debt Consolidation Loans
  • Fixed Rate Loans
  • Unsecured Personal Loans
  • Variable Rate Loans
  • Terms and Conditions
  • Privacy Policy