Category: Office of Research Publication
The Recovery of Credit Applications to Pre-Pandemic Levels
This report is an update to CFPB’s May 2020 report and December 2020 blog regarding the effects of COVID-19 on consumer credit applications, as reflected in credit report inquiries. It examines the different paths of recovery for different types of credit applications.
- Auto loan applications fell dramatically early in the pandemic, then recovered most of their initial drop by June 2020 and have been close to their usual level since early 2021.
- New mortgage applications had an initial dip but were above usual levels by May 2020 and have remained so through May of 2021.
- Credit card inquiries also experienced a large drop early in the pandemic and stayed depressed for much longer, remaining 30 percent below pre-pandemic levels in September 2020. Nevertheless, they recovered by spring of 2021 and have remained around pre-pandemic levels.