ARLINGTON, Va.—Total consumer credit rose 2.8% in December (seasonally-adjusted, annualized), up 0.1% versus a year ago.
"Revolving credit contracted once again and has now fallen in nine of the last 10 months," said NAFCU Chief Economist and Vice President of Research Curt Long. "Nonrevolving credit has surpassed its pre-pandemic level as interest rates remain at all-time lows and consumers shift spending to big-ticket items.
"Lenders have tightened standards through the pandemic but that seems to have tapered off as the latest Senior Loan Officer Survey showed more banks reported easing standards for credit cards than tightening; a modest net amount of banks also reported easing standards on auto loans," added Long. "NAFCU expects modest growth in consumer credit into the summer, followed by a more robust recovery."
Total consumer credit for credit unions declined 0.3% over the month, representing a 2.6% rise from a year earlier.
Over the past 12 months, credit unions’ share of the market has risen 0.3% percentage points to 11.8%. Meanwhile, banks’ share fell 2.1% percentage points to 40.3%, and financial companies’ share has risen 0.4% percentage points to 13.2%, Long said.