NEW YORK—The competition facing credit unions in the credit card marketplace is only growing, as new data show inflation is playing a key role in driving up the number of cards Americans are holding.
Citing Federal Reserve and Equifax data, USA Today reported the number of new credit card openings has surged.
According to a recent report from the Federal Reserve, revolving credit (credit cards and lines of credit) increased by 19.6% from the previous year to $1.103 trillion.
“This number is an all-time high, breaking the pre-COVID-19 record of $1.092 trillion in 2019. Credit card debt dropped to $974.6 billion in 2020 but that number has been increasing steadily as inflation began to eat up more and more of Americans' paychecks,” USA Today reported.
More Than 11-Million New Cards
According to a survey by Equifax, Americans received 11.5 million new bank credit cards through February 2022.
“This is a 31.4% increase from the previous year. The total limits for these credit cards were $55.5 billion, a 59.2% increase from the previous year. Total credit limits now stand at $4.12 trillion, $224 billion above the pre-pandemic level,” USA Today said.
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