The COVID-19 pandemic pushed the economy into what was, by some measures, the worst contraction on record, but consumer lending trends did not deteriorate as they usually do during a recession. Government support for households raised aggregate personal income in 2020 and helped support consumer loan performance. While credit card loan balances contracted in 2020 and remained below the pre-recession level through third quarter 2021, auto loans and other consumer loans expanded throughout 2020 and 2021. Performance of all types of bank consumer loans improved thanks to government support, forbearance programs, and tighter underwriting standards for new loans. While caution is warranted, and changes in the pandemic and responses could weaken the outlook, the future of consumer lending appears strong.
Last Updated: November 19, 2025