Use of Credit Cards Grow as Delinquencies Decrease - Other News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Use of Credit Cards Grow as Delinquencies Decrease

Use of Credit Cards Grow as Delinquencies Decrease

Add to Favorites:

Stats from the Federal Reserve and the American Banker’s Association spell good news for the economy.

The Fed’s latest numbers show the biggest jump in credit utilization seen since May 2012. While growth of student debt and auto loans held steady, use of revolving credit increased by $6.6 billion—a 9.3% annualized gain—between April and May 2013. That means people are charging more and carrying balances on credit cards.

May’s jump in revolving credit utilization is just one sign that consumers are getting over their recession-era wariness of taking on debt.

Shrinking delinquencies

The American Banker’s Association (ABA) also came out with data last week showing a drop in credit card payment delinquencies. The delinquency rate (people more than 30 days behind on credit card payments) was at its lowest since 1990, at 2.41%.

Post-economic crash, the delinquency rate reached a high point of 5%, leading to credit issuers writing off bad debts and becoming very selective about how much new credit they issued and to whom.

More credit could raises interest

Even though credit is more widely available and people are pulling out their plastic with less hesitation, there are still concerns that interest rates may start to climb. Economic analysts predict that credit card interest rates, which have mostly stayed flat, could begin to follow mortgages and student loans on an upward trajectory.

More good news from the Conference Board and jobs sectors

In other optimistic economic news, the July unemployment report reflected 195,000 new jobs added in June. The Conference Board also came out with their Consumer Confidence index for June. The index rose from 73.4 in May to 81.4 in June and reflected an increasing number of consumers who believe that there are even more jobs are on the horizon.

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.
Add to Favorites:

Related News:

Credit Expected to Increase as Well as Risk
Credit Expected to Increase as Well as Risk

Posted: April 11, 2014

Risk managers at North American banks foresee a greater demand for credit leading to increased balances, and increased risk for credit issuers. Continue reading
Survey Reveals Common Money Misconceptions
Survey Reveals Common Money Misconceptions

Posted: April 23, 2014

People think they know more about money than they actually do, according to a new survey highlighting common money myths and attitudes about finances. Continue reading
Girl Scout Survey Highlights Need for Credit Education
Girl Scout Survey Highlights Need for Credit Education

Posted: April 17, 2013

While girls are eager to learn money management skills, fewer than half know how to use a credit card, understand what a credit score is, or know how credit card fees and interest rates work, according to a new study. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
You could turn $150 into $300 with Cashback Match™. Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically.
For Excellent, Good Credit
No Annual Fee. See WebBank/Fingerhut Credit Account Terms.
For Bad Credit