ARLINGTON, Va.—Total consumer credit rose 5.3%, at a seasonally-adjusted, annualized rate, in April and is up 2.4% versus a year ago. Revolving credit, which is primarily credit cards, fell 2.4% during the month and is down 5.5% compared to April 2020.
Non-revolving credit – primarily auto and education loans – rose 7.6% and is up 4.9% over the year.
"February and March both saw modest increases in revolving credit, but the new round of stimulus checks at the end of March may have spurred another dose of household deleveraging," said Curt Long, NAFCU's chief economist and vice president of research. "The outlook is positive, though, as COVID cases are receding, the economy is reopening, and consumer confidence keeps climbing.
"NAFCU expects consumer credit to begin accelerating," Long concluded.
Total consumer credit for credit unions was up 1.6% over the month; however, total consumer credit for credit unions is fell 0.1% from a year prior. Consumer credit at banks fell 1.2% over the year, while financial companies saw a 0.7% rise.
Credit unions' share of the market has remain changed at 11.9%. Meanwhile, banks' share grew 0.1 percentage points to 39.3%, and financial companies' share has risen 0.1 percentage points to 13.6%, Long said.