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