Retail Credit Account Openings Plummet In First Full Month Since CCCFA Changes

There was a 44% year on year decline in new retail credit account openings in January 2022 compared to January 2021, as follows:
 

- Home loan account openings declined by 35%
 

- Unsecured credit accounts openings declined by 52%
 

- Credit card account openings declined by 71%
 

- Personal loans new account openings declined by 33%
 

Comment:
 

Equifax Managing Director, Angus Luffman says January 2022 had the biggest decline in new account openings since the initial COVID-19 dip in March 2020. “January was the first full month of account opening data since the new affordability assessment criteria was introduced through the CCCFA changes in December 2021. A drop of this magnitude represents a significant decline in credit activity be it for: new credit, refinancing or consumers just trying to get a better deal on their finance.”
 

“The impacts are widespread across all retail credit portfolios, with the biggest declines in the unsecured credit products - credit cards and personal loans. Unsecured credit helps Kiwi consumers purchase everyday items like furniture and electronics, to make their lives better. In January we saw that borrowing activity decline significantly.”
 

Note: New account openings, refers to new retail credit accounts that are approved, on which the credit has been activated. 
 

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