Equifax sees resilient consumer spending ahead of holiday season
EFX•Equifax said consumer spending appears resilient ahead of the holidays, while some borrowers face rising financial pressure. Personal loan originations rose more than 26% year over year, and home equity line of credit utilization increased 6.6%.
1. Borrowing trends
Equifax said personal loan originations increased more than 26% year over year and home equity line of credit utilization rose 6.6%. Bank card utilization declined nearly 3% year over year but has remained around 20.34% since August 2023. Subprime borrowers’ utilization is in the 70% range, and credit card utilization is expected to rise particularly among younger consumers and borrowers with limited financing options.
2. Lender monitoring
Equifax said lenders should track utilization by borrower segment and requests for credit line increases. Home equity borrowing is increasingly being used for emergencies and potentially holiday purchases.
