Credit Continues to Increase, Improving Economic... - Other News


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Credit Continues to Increase, Improving Economic Outlook

Credit Continues to Increase, Improving Economic Outlook
The content is accurate at the time of publication and is subject to change.

The Federal Reserve’s monthly report for November 2012 shows an economy in continued comeback mode. For the fourth month in a row, consumer credit has risen, posting a $16.05 billion increase in November.

In October 2012, consumer credit was up by only $14.08 billion, but it has expanded at a steady pace since the middle of 2010 – a good sign for the economy and more than predicted. However, looking at the difference between revolving and non-revolving credit gives a fuller picture of just where that credit increase is occurring. Non-revolving credit made up most of the rise in credit.

Credit card use not so strong

Revolving credit – the kind that includes credit card spending – was only up by $817 million, compared with $15.23 billion for non-revolving credit. That means more people taking out loans to attend school and buy cars rather than putting charges on credit cards.

Government student loans were up 28% over last year, although they were still below the record-high increase of 81% in September 2010. At that time, many people faced with unemployment because of the recession flooded campuses in pursuit of new degrees. People are still returning to school – and taking out loans to do so – but not at the same rate.

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  • Deborah Ellsworth

     would very much like to start a new credit history  by making payments on time I would tohave a credit card that is NOT PREPAYID! I don’t need a card with a high limit just something to start a new credit history.
    Thank You Deborah Ellsworth

  • Deborah Ellsworth

    I would very much like to start a new credit line to get back on track. I DO NOT WANT A PREPAID CARD!! This new credit card if I am approved does not have to hace a high limit just something for me to start over again and prove myself
    D Ellsworth

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