|The Equifax Consumer Credit Demand Index: Q3 2022 has been released.
A main highlight which is featured within the report is the trend of credit cards and personal loans are on the rise. Equifax data is showing strong demand for unsecured credit, while buy now pay later growth eases and mortgage demand continues to fall.
Other highlights include:
· Total consumer credit demand improved in Q3 2022 by 17.1% vs. Q3 2021.
· Credit Demand has increased by 38.9% compared to Q3 2020 when the nation was grappling with the impact of COVID on the economy.
· Mortgage demand decreased in Q3 2022 after 5 cash rates rises from May 22 to Sep 22. Demand is expected to keep adjusting downwards as the market is expecting further tightening.
· Unsecured credit showed strong demand growth. Credit card demand grew 31.5% and Personal loan demand increased 22% compared to Q3 2021. A mixture of factors contributing to growth in unsecured lending, such as the return of international travel and increasing cost of living pressures.
· BNPL growth slowed to 9.9% against Q3 2021 as demand for traditional lending products return for consumers.
Source – https://www.equifax.com.au/business-enterprise