Personal loans to cover Rose emergencies and moving in 2020 | Personal finance

But the percentage of people who said they were pre-qualified for a personal loan to consolidate debt or refinance credit cards fell in 2020. These are among the only reasons NerdWallet members have chosen less often, along with vacation.

At the start of the pandemic, many lenders slowed down lending and tightened their credit standards. At the same time, borrowers have tightened their budgets.

Consumers have become “remarkably financially responsible” over the past year in the face of economic uncertainty, Tambor says.

“People are paying off their credit cards, they are paying off their debt, so you just see a little less debt consolidation,” he says.

Although debt consolidation borrowing declined last year, this was still the most popular reason given by NerdWallet members when they prequalified. More than half (55%) said they wanted to consolidate their debts. About 7% said they wanted to refinance their credit card with a personal loan.

Home renovations have remained constant

About 7% of NerdWallet pre-qualified users chose home improvement as their reason for borrowing in 2020, which is consistent with the previous year.

Despite the consistency, many consumers saw home orders triggered by the pandemic as an opportunity to tackle projects they didn’t have time for or hadn’t thought of before, Walsh says.

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