DALLAS, November 3, 2021 / PRNewswire / – Consumers are increasingly opening lines of credit, funding purchases and paying late, according to a recent analysis of customer credit activity from ScoreSense, a credit score monitoring product. The analysis, of January 2021 to present, reveals a âspringboardâ trend:
- The number of customers opening new credit accounts, up nearly 5% since January, has steadily increased throughout the year as people have returned to a more normal lifestyle.
- The use of credit cards increased during the summer months as people began to increase their discretionary spending on travel, meals and other activities.
- On the heels of increased credit card spending, which began to increase in March, delinquent account activity has trended upward from June to present.
New accounts, expenses and defaults continue to increase as the holiday shopping season approaches.
The trends in credit spending observed by ScoreSense coincide with a quarterly report on household debt and credit from the Federal Reserve Bank of new York, who found that credit card bills increased by $ 17 billion in the second quarter of 2021, at $ 790 billion nationally. This was the first increase after four consecutive quarters of decline.
âWe are starting to see an increase in delinquent accounts, which appears to be delaying the increase in credit card spending. This will be a trend to watch over the next two to three months to see if some consumers return to bad credit habits and a return to pre-pandemic levels of credit problems, âsaid Carlos Medina, senior vice president at One Technologies, LLC., which offers ScoreSense. “As average credit scores have increased during the pandemic in 2020 and this year, it remains to be seen when these improved averages start to fall back to pre-pandemic levels.”
Heading into the fourth quarter, ScoreSense takes a look at several economic factors, including the holiday shopping season, when many consumers are overspending. Additionally, ending federal assistance programs such as expanding unemployment benefits and banning evictions could have a negative impact on consumer buying behavior and credit activity if affected consumers are ‘use credit to pay for basic expenses.
ScoreSense serves as a one-stop digital resource where consumers can access credit scores and reports from the three major credit bureaus â TransUnionÂ®, EquifaxÂ®, and ExperientialÂ®– and 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 more informed decisions about their financial lives. The company’s consumer credit products include ScoreSenseÂ®, which allows members to seamlessly access, interact with and understand their credit profiles from the three major bureaus using a single app. The ScoreSense platform is continually updated to give members more in-depth information, personalized tools, and personalized customer 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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