Consumers can expect a spike in lending and greater access to credit in the first half of 2021, TransUnion predicts

Here’s why that’s good and bad news — and what, as a consumer, you should be on the lookout for in the new year.

The good and bad news

TransUnion’s forecast that banks will have more confidence lending to consumers and will loosen their requirements[6] is certainly positive news for those needing credit. Yet, it relies on the expectation of improved employment and a continued economic recovery as the pandemic hopefully winds down.

“The re-opening of America and the expected addition of more jobs and increased wages will make the greatest impact on how consumers are able to manage their debts in 2021,” Komos says in the company’s press release[7].

By the second quarter of 2021, consumers will have had a year of living in this pandemic. Those who maintained employment are likely more comfortable (and looking forward to) taking on credit, so this is good news.

Many others, however, could be in an even tighter financial situation in Q2 2021, and though credit could help them make ends meet, they may worry about defaulting or getting even further behind.

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