Study: Consumers Disproportionately Experienced the Financial Impact of COVID-19

FORT WORTH, Texas – (BUSINESS WIRE) –Raise Credit, Inc. (NYSE: ELVT) (“Elevate”), a leading technology-driven provider of innovative and responsible online credit solutions for non-Prime consumers; and SpringFour, the only social-impact fintech platform helping financial institutions achieve their Customers the support they need to regain financial control today announced the results of a research study examining the financial impact of the COVID-19 pandemic on American households. Co-authored by Elevate and SpringFour, the study found that the impact of the pandemic on American households has been uneven and that those who have struggled need support beyond what traditional financial institutions provide.

The study analyzed data collected by Elevate’s in-house think tank, the Center for the New Middle Class (CNMC), which surveys premium and non-premium consumers on a monthly basis to understand the behavior, attitudes, and challenges of this growing population. CNMC defines prime as those with credit scores above 700 and non-prime as those below 700. The study also analyzes SpringFour data on demand for funding in over 30 need categories as well as SpringFour survey data on the impact of the pandemic.

Among the 10,580 people interviewed by CNMC, the key findings were as follows:

  • Around 20% of respondents said they had lost their job in the past year.

  • Of the 20% who reported job loss in the past year, 75% of respondents said the job loss or vacation was due to the pandemic.

  • Overall, non-prime consumers were much more likely to spend some of their stimulus on basic needs such as food, utilities, housing, or medical expenses.

  • About 50% of non-primary consumers reported spending their stimulus checks on food or groceries, compared to less than a third of primary consumers.

  • The proportion of non-main consumers spent twice as much money on housing as the main consumer.

  • Top-class households were much more likely to use economic funds to save than non-prime households. This suggests that prime households have achieved greater financial stability and are better prepared for unforeseen expenses.

“The income volatility caused by the pandemic has placed many already financially fragile Americans in an even more difficult position. While we can’t predict when unexpected events like the pandemic will occur, we can be better prepared. That means equipping both prime and sub-prime Americans with the tools and resources they need to make informed decisions about their finances so they can meet their basic needs, meet their savings goals, and achieve long-term financial stability, “said Jason Harvison , CEO of Elevate.

Analysis of SpringFour’s consumer demand data confirmed CNMC’s findings, citing that the organization has enabled 5 million referrals to nonprofit and government agencies in over 30 categories of needs since the pandemic began. American households are looking for resources to meet their basic needs, and when unexpected funds become available, such as a stimulus payment, consumers are likely to use them for those purposes. The authors suggest that if families were more aware of the resources that could help them pay for food, utilities, medical expenses, and other basic necessities, those families might be better able to save stimulus funds or those dollars in others Ways to reintroduce cases back into the economy.

“The pandemic has shown how precarious household financial health is – and demonstrated that banks, financial institutions and nonprofits must all prioritize the financial health of their customers. Everyone benefits from this – customers, companies, employees and the economy. Now we all need to step up and build on that momentum because none of our customers are immune to financial challenges, “said Rochelle Gorey, co-founder and CEO of SpringFour.

About Elevate

Elevate (NYSE: ELVT), along with the banks that license its marketing and technology services, to date has extended $ 9.2 billion in non-prime loans to more than 2.6 million non-prime consumers and its own Customers over $ 8.5 billion versus the cost of payday loans. Its responsible, technology-enabled online lending solutions bring instant relief to customers today and help them build a better financial future. The company strives to reward borrowers for good financial behavior with features like interest rates that can drop over time, free financial training, and free credit monitoring. Elevate’s groundbreaking credit products include RISE, Elastic, and Today Card. For more information, please visit

About SpringFour

SpringFour is a Certified B Corporation and a social impact fintech focused on delivering financial health resources to consumers through innovative call center and direct-to-consumer digital solutions. In 2020, SpringFour provided more than 3.2 million referrals to over 20,000 local nonprofit and government resources to help consumers improve their cash flow, payment performance, and financial wellbeing.

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