ARLINGTON, Va.—Decelerating for the third consecutive month, total consumer credit rose 3.6% in March, after a monthly increase of 4.3% in February and 4.7% in January (all seasonally adjusted annual rates).
NAFCU Chief Economist and Vice President of Research Curt Long points out that revolving credit, which is primarily credit cards, reported its largest decline – 3% – since December 2012.
"According to a recent report by TransUnion, while overall credit card delinquency rates remain low, lenders are mitigating risks by slowing originations for consumers in the higher-risk tiers," Long said in a NAFCU Macro Data Flash report. "Non-revolving credit growth remained robust."
Non-revolving credit, which is mostly motor vehicle and education loans, rose 6%.
From a year ago, total consumer credit was up 5%; non-revolving credit increased 5.1% and revolving credit increased 4.8%.
Total consumer credit for credit unions increased 1.4% in March from the previous month, compared to a 0.4% decrease for banks and a 0.8% decline for financial companies. In the first quarter, total consumer credit at credit unions rose 3.4%, while banks and financial companies decreased 2.8% and 1.9%, respectively, Long noted.
"Credit unions' portfolio of consumer credit was up 11.8% from last year," Long said. "Credit unions now own 11.3% of the market, which is up from 10.6% a year ago."
From last year, banks' market share edged up from 40.9% to 41.1% and financial companies' share fell from 14.9% to 13.8%.