While the credit industry may not be out of trouble yet, there are some signs that recovery is finally here. Equifax's Credit Trend data is showing small, but important changes in the credit industry. A few of these changes have occurred because of looser restrictions on lending, and some have occurred in spite of tighter lending standards.
Signs of Life include:
- Risk scores are stabilizing and improving, because less consumers are delinquent on loans.
- Consumers are paying down debt voluntarily
- Lenders are extending new credit, although they are doing so very cautiously
- Auto loans continue to expand, despite tight auto lending restrictions
- The number of credit cards available is increasing, due in part to looser lending restrictions in the credit card industry
- Consumer debt is $800 billion lower than it was at the October 2008 peak.
How are you contributing to the credit market? Are you spending more today? What are you not willing to spend on? What will you shell out for?