SFA Research Corner: After a Conscious Decoupling, Will There Be a Reconciliation? Unemployment and Credit Performance Post-COVID

Pre-COVID, consumer loan performance tracked unemployment closely. This relationship decoupled in 2020. “We have seen credit scores moving up following the onset of pandemic, largely reflecting more conservative use of credit and changes in reported delinquencies due to the presence of accommodations,” explains Emre Sahingur, head data scientist at VantageScore Solutions. As scores have plateaued, Sahingur warns, however, that a “a closer examination of the data reveals some early signs of reversing trends.” Consumer credit in a post-COVID environment will be discussed further at SFA’s March 18 webinar – Emerging From Suspended Animation – Consumer Credit and the Impact on ABS. We encourage you to join us as our panel of experts discuss the potential impact on ABS backed by auto loans and leases, credit cards, student loans and personal installment loans.