Transunion records decrease in loan consumption,... - Other News

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Credit Card Applications » News » Other » Transunion records decrease in loan consumption, credit card dues

Transunion records decrease in loan consumption, credit card dues

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Transunion records decrease in loan consumption, credit card dues

According to TransUnion, credit card loan consumption has decreased by 13 percent. Compared with previous years, the average amount of credit card loans fell to approximately $5,000. Among US states, only 22 have recorded loans that are higher compared with the national average. The highest amount of credit card debt was recorded in Alaska during the first quarter.


Meanwhile, the state which had the lowest balance on average was Alabama. The average debt in the state fell to about 27 percent. Most residents in Alabama had paid their balances on time, as well as meeting the 90-day deadline to pay their loans. For the recent quarter, credit card owners in the state have had the lowest amount of liability in the past eight years. Reports also show that most credit card holders prioritized repayment of their loans instead of investing in new housing projects (a trend which started in 1998).


Analysts say that credit card companies have an average of $6,000 in debt issued for the first quarter. This year, it falls by an average of $1,000. Among credit card companies in the United States, the companies which are affected most were the big ones.


According to TransUnion`s director for consulting and strategy Ezra Becker, it was the very first time that the balances of credit card holders were paid on time compared to the previous quarters. The number of credit card holders who do not pay their balances on time fell to below 1%. Becker says that this is a good indication that credit card holders are becoming more responsible in using their cards and paying their balances.


The effort is a product of how credit card holders want to have a consistently good standing in their credit records and history. According to Becker, this is important because consumers recognize the impacts of recession especially in job stability. The consumers nowadays use their credit cards to purchase items that they need, and now realize a greater need to pay off their balances, Becker added.


With better consciousness and growing trends of responsibility among credit card holders, TransUnion believes that the rate of credit delinquency will remain below 1% in several US states.

All credit cards terms, fees and rates mentioned in this article/post are actual on the posting date. See the current products’ Terms & Conditions on the issuing banks' websites.
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